While the crypto sector has invited comments from various individuals and organizations, Morgan Stanley has compared the performance of Bitcoin to that of Tesla.
Morgan Stanley, an American multinational investment management and financial services company, has published a report comparing the performances of the largest cryptocurrency to Tesla, an American multinational automotive and clean energy company. The report refers to the following graph to issue an explanation.
The graph makes it clear that- Bitcoin and Tesla both have been trading virtually in lockstep, i.e., following the same trend over the past year.
In the past two months, Tesla’s stocks have shed close to $500 billion of its market cap, plunging the overall net worth of company’s CEO Elon Musk from its peak at $340 billion to $191.4 billion. Experts have speculated the right-wing propaganda of Musk’s post that the purchase of Twitter is likely fueling this trail. Musk’s approach on the social media platform might have developed a negative sentiment toward Tesla among the masses.
Additionally, Morgan Stanley points out that the Twitter fiasco has impacted several areas of economics, putting them at severe risk. The areas threatened by it include consumer sentiment, commercial partnerships, government relations, and support from the capital market.
According to experts, the directors of Tesla might be forced to rein in the chief executive as the company’s board has been criticized several times for lack of independence from Musk. The current losses in the company have also put into question its future.
The downfall has brought Musk close to the world’s second richest Bernard Arnault, French fashion tycoon and CEO of LVMH, a French-holding multinational corporation and conglomerate specializing in luxury goods.
However, Morgan Stanley still puts a positive outlook on the current scenario and hopes people’s sentiments toward the Twitter crisis will change in the coming days, relieving the shareholders’ concerns.
At the time of writing, Tesla is over 60% down from its all-time high, whereas Bitcoin is about 76.21% down from its peak.