Tesla Plummets Up to 13% as Bitcoin Crashes (Update)

Intraday Drop to $600 Range... 30%↓ from Last Month's High
CNN "Bitcoin Price Decline Affects Tesla Stock"

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Kim Suhwan] The stock price of Tesla, the U.S. electric vehicle company led by Elon Musk, fell to the $600 range during intraday trading but then recovered to a stable range.

According to CNN on the 23rd (local time), Tesla's stock price dropped by 13% during the day to $619. This marks a decline of about 30% from the $883 recorded on the 26th of last month. CNN also reported that Tesla largely lost the stock price gains from its inclusion in the Standard & Poor's (S&P) 500, a major U.S. stock index, due to the sharp drop in its stock price that day.

Earlier, on the 8th, Tesla purchased $1.5 billion (about 1.7 trillion KRW) worth of the cryptocurrency Bitcoin, sparking a Bitcoin rally. However, as Bitcoin prices plummeted, Tesla's stock price also slid, CNN reported.

Bitcoin had surpassed $50,000 for the first time ever on the 17th. In response, U.S. Treasury Secretary Janet Yellen warned on the 22nd that "Bitcoin is a highly speculative asset," cautioning against the rapid price surge. Additionally, on the 20th, Musk triggered a Bitcoin price decline by tweeting that "Bitcoin is too expensive." The current price has dropped to $47,000.

Bloomberg News stated, "Musk's comments on Bitcoin partially fueled the stock price decline."

As the Bitcoin downtrend continued, Tesla closed the previous day at $714.50, down 8.55%.

Daniel Ives, a technology stock analyst at Wedbush Securities, analyzed, "The volatility of Bitcoin is directly impacting Tesla's stock price."

Furthermore, CNN reported that Tesla's recent price cuts on its affordable models were interpreted as a decrease in demand for Tesla electric vehicles, and that the shortage of electric vehicle batteries and the entry of competitors like Apple Car into the electric vehicle market also influenced the stock price decline.

Previously, Tesla's stock price surged 743% last year, achieving the highest market capitalization among all automobile manufacturers. When Tesla was officially included in the S&P 500 on December 21 of last year, its stock price was $649.86.

On the day, Tesla's stock price fluctuated around the $700 level, down about 2% in the afternoon.