Tesla Stock Drops as CEO Elon Musk’s Bitcoin Tweet Bites Back
FILIP SINGER / POOL / EPA-EFE / Shutterstock / FILIP SINGER / POOL / EPA-EFE / Shutterstock
Elon Musk, CEO of Tesla and SpaceX, is known to tweet statements that sparked warnings and even charges by the US Securities and Exchange Commission. Most recently, lawyers warned the billionaire that he could ask the SEC "questions" about the "facts and circumstances" of his company's $ 1.5 billion purchase of Bitcoin, Forbes reports.
See: Tesla On Track To Bring $ 1 Billion In Bitcoin Profits
Finding: Bitcoin's value will rise to $ 1 trillion when the price hits $ 54,000
But is Musk responsible for a drop in Bitcoin prices this past weekend? Bitcoin fell 17% on Monday to drop below $ 48,000 after hitting a record high of $ 58,042 on Sunday. According to Entrepreneur, Tesla's $ 1.5 billion investment, along with investments from big names like Mastercard and BNY Mellon, was partly what caused the surge. Bitcoin hit a market cap of $ 1 trillion for the first time on Saturday, reports Entrepreneur.
But by the time the market opened on Monday, crypto had fallen to less than $ 53,000 and kept falling. Bitcoin was hovering a little over $ 50,000 by the market close on Monday. On Friday, Musk tweeted that both Bitcoin and Ethereum, the second largest crypto by volume, both "appear high".
See: Elon Musk, the richest person in the world, Touts Bitcoin Over Cash
Find: Bitcoin Is Expensive and On The Way To Crash - Consider These Smart Crypto Alternatives
In the past, it appeared that Musk's tweets drove up the price of Dogecoin, Bitcoin, and GameStop stocks. According to Entrepreneur, the point in time when his tweet affected Bitcoin's prices over the weekend seems to have been pushed back slightly. After all, popular cryptos continued to rise even after the billionaire's tweet.
Market correction or (accidental) market manipulation? Analysts may never know for sure. However, Bitcoin's depreciation also caused Tesla (NASDAQ: TSLA) stock prices to decline, hitting a monthly low of $ 714.50 at the close on Monday.
As a result, Musk lost $ 15 billion of his net worth and relinquished his reputation as the richest person in the world to Jeff Bezos, CEO of Amazon. Just $ 3 billion separate Bezos and Musk, with Bezos' net worth on the Bloomberg Billionaires Index at $ 186 and Musk's at $ 183 billion.
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This article originally appeared on GOBankingRates.com: Tesla Stock Drops as Bitcoin Tweet Bites Back by CEO Elon Musk
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