Why did the price of Tesla boost this Wednesday?
In the month of February, Elon musk bought $ 1.5 billion in Bitcoin for a few months later to detach from them after considering the levels of pollution that their production exhales into the environment. However, experts believe that there is a symbiosis between both assets. Specially in days of volatility according Daniel Sparks on Nasdaq.com
Some investors may be concerned about how the price of Bitcoin at the end of the second trimester Tesla could affect the Profits informed of the company. The recent rally in the price of the cryptocurrency may allay some concerns about how a drop in the price of the digital currency could affect the company’s earnings report, although it is not known where the digital currency will trade at the end of the period.
Tesla shares may also be getting a boost from the boost in stocks growth stocks.
“Investors should keep in mind that Tesla’s Bitcoin investment is small relative to total cash balance from the automaker. The company closed on first quarter with $ 17.1 billion in cash and cash equivalents. Tesla’s investment in Bitcoin is particularly small relative to the company’s $ 630 billion market capitalization, ”Sparks concludes.