In light of recent massive spikes in cryptocurrency, many new investors have joined the fray with a “can’t lose” mentality. In actuality, having money invested in cryptocurrency right now is anything but a “can’t lose” situation.
In February, Tesla purchased 1.5 billion dollars worth of bitcoin for investment and diversification purposes. Subsequently, its stock price plummeted. Will this polarizing move benefit Tesla in the long-term? Only time will tell.
There are many justifications for this sudden surge in demand for Tesla stock; however, does any permutation of such reasons warrant a $60 billion increase in market valuation, , especially since Tesla is yet unprofitable?