Musk tweets – tesla and bitcoin take the fall!

Elon Musk is no stranger to the world of twitter, his tweets have time and again made the stock price of Tesla dance. Recently via a tweet, the CEO of Tesla announced that Tesla was indefinitely suspending the use of Bitcoins for purchase of its automobiles citing the reason that mining and transactions of the cryptocurrency was fossil fuel intensive, and the environment takes a toll because of the said activity. The stock market naturally reacted to the tweet, where the share price of Tesla dropped 4.42% and closed at $589.89 on NASDAQ and Bitcoin fell more than 11% to close at $50,480.

Rising competition Tesla

The rising competition from automobile giants like Ford, Volkswagen in the Electric Vehicle segment coupled with the global micro-chip shortage may not come off as music to the ears of the Tesla investors. When we couple that with news from Shanghai, where Reuters reported that the automaker had paused its plans to expand its existing plant because of the uncertainties related to US-China tensions, and now the backtrack from accepting bitcoins has already made the stock drop more than 10% this week and Analysts believe that the stock may well continue to remain volatile and under pressure because of the impending inflation.