Tesla Stock is now Tied to the Value of Bitcoin, says Wedbush Analyst

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“On the downside, it’s playing with firecrackers, and risks and volatility are added to the Tesla story,” Ives added.

Wedbush is still bullish on Tesla’s stock

However, shares of Tesla’s price plunge aren’t only tied to Bitcoin. On Monday, the company’s shares closed down 8.55% after investors made a hard bet on cyclical stocks. The dip is Tesla’s biggest loss when it closed down 10.34% on September 23, 2020.

Additionally, Ives isn’t the only person to warn of Bitcoin’s highly volatile market. On Monday, U.S. Treasury Secretary Janet Yellen warned of the digital currency and stated that investors can lose lots of money by investing in Bitcoin, Yellen said that “Bitcoin is an extremely inefficient way of conducting transactions”.

Furthermore, Bill Gates; billionaire and co-founder of Microsoft said that Bitcoin is one innovation that the world can live without. Gates argued that the decentralized feature of digital currency makes it worthless.

However, Ives’ comments on Bitcoin don’t seem to stop his company Wedbush from staying bullish on Tesla. He said: “We believe Tesla will hit a one trillion market cap over the coming months through its EV growth and not through bitcoin,”