Elon Musk’s change of course on bitcoin is a threat to Tesla stock, Wedbush says

Elon Musk’s change of course on bitcoin is a threat to Tesla stock, Wedbush says

Elon Musk's reversal on allowing Tesla accept as payment sent shockwaves across the digital asset ecosystem, and is "very surprising and confusing", not only to cryptocurrency enthusiasts but to Tesla shareholders, Wedbush's Dan Ives said in a note Thursday. "For Tesla and the stock, not accepting bitcoin does not change the thesis or growth trajectory for the EV story, however, it does add to the noise and volatility around the name at a time in which risk assets are under enormous selling pressure on the Street with Tesla leading the charge," Ives wrote. Musk's Twitter announcement saying has just came three months after the company invested billions in the cryptocurrency and accept it as payment for its electric cars. Following news of Musk's reversal, Other digital assets such as and , as well as crypto-linked stocks including , , and , all sank on the news. Ives said the move was a "shocker", and added that this could increase volatility for Tesla. "Musk is now concerned about the use of fossil fuels in bitcoin mining and transactions, yet the nature of bitcoin mining has not changed in the last three months, which speaks to why backtracking on the crypto transaction