Shares of Elon Musk’s Tesla are going through a difficult period. From its all-time high, the automaker’s stock has already fallen 50 percent. Like Bitcoin, tech companies like Tesla have been hit hard by the Federal Reserve’s rate hikes.
Bitcoin on sale?
Tesla is known as one of the first publicly traded companies to invest heavily in Bitcoin. Elon Musk’s company bought about $1.5 billion worth of Bitcoin in January 2021. Much of it has since been sold. The first sale took place in March 2021, when Tesla wanted to sell 10 percent of Bitcoin to test the liquidity of the market.
The company has since sold another 75 percent of all Bitcoin by July 2022. Elon Musk is very concerned about the health of the global economy and thinks he needs all the dollars now. High inflation is forcing people to economize and luxury products like a Tesla are the first things to be economized on. There is a chance that Tesla is also selling its last bit of Bitcoin.
Tesla keeps falling
Shares of the celebrated Tesla have now fallen from $409.97 to the current price of $204.99. Like Bitcoin, Tesla reached this all-time high in November 2021. Investors seem to be getting ready for disappointing sales figures at Tesla. Analysts believe that the rising prices of Tesla cars will soon also have an impact on sales.
In particular, the factory in Shanghai is still suffering from the COVID-19 lockdowns in the city. The company also suffers from shortages and the huge increases in the cost of raw materials. The soap around Elon Musk and Twitter has also done the share little good. Investors have the idea that the entrepreneur is busy with too many things at once and that he needs to refocus.