Tesla stock has been on the backfoot for quite a few weeks now, and founder and CEO Elon Musk’s maverick-style behavior has been one of the contributing factors.
Is he buying Twitter or is he not? Is it wise to take a publicly listed corporate tech giant – Tesla – into cryptocurrency?
These are all questions that would potentially cause polarized views among investors and traders.
This week, however, Tesla stock has been growing in value, and over the five day moving average it has increased by a strong 11%, taking its value at the close of business on Friday’s New York trading session to $228.5 per share.
This steady rise in value from its low point a week ago may still only place Tesla stock at a fraction of its value one month ago when it was trading at over $300 per share, and over a six month period it is possible to see values of $317 having been reached in early May.
An upward direction over a period of a few days is interesting, however, and coincides with Elon Musk’s renewed interest in Twitter, a deal which he pulled out of earlier this year but regained interest in owning the social media platform just recently and has now dominated the media in news stories which include speculation that Mr Musk would terminate a large number of Twitter employees’ contracts and restructure the platform.
Additionally, Elon Musk has once again influenced the cryptocurrency market, causing a sudden $1 Trillion Bitcoin and altcoin price surge As Ethereum and Dogecoin increased in value late last week, with one of his outrageous ideas being potential plans to integrate the meme-based cryptocurrency dogecoin into Twitter if his $44 billion bid goes through.
Whether his high profile social media exclamations are always catalysts for volatile markets or not, it is clear that Elon Musk’s ideas are often taken seriously. In 2021, over $1 trillion was wiped off the value of 5 popular cryptocurrencies because of a Tweet put out by Elon Musk saying that Tesla would no longer accept Bitcoin as a method of purchasing the electric cars manufactured by the company on the grounds of environmental concerns due to the amount of power needed to mine Bitcoin.
As the values crashed, there was no panic. Instead, many people bought in and then when the prices went up again as Elon Musk then retweeted that he had worked with Bitcoin mining companies and resolved the issue, a clear pattern of market influence had been demonstrated.
Now, Tesla’s prices are rising slowly, which is interesting given Elon Musk’s obsession with cryptocurrency to the extent that the Tesla company controversially became the first ever publicly listed corporation to become a Bitcoin ‘whale’ in 2021.
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