Tesla stock is "heavily tied" to bitcoin following its $1.5 billion purchase of the cryptocurrency last month, Wedbush analyst Dan Ives said in a note on Tuesday. While Tesla's purchase of bitcoin represents a "small amount" of the company's overall cash position, perception is reality on Wall Street, with investors starting to tie bitcoin and the EV manufacturer "at the hip," Ives said. Tesla likely made paper profits of $1 billion on its January purchase of bitcoin, more than the profits it made on its underlying car business in 2020, according to Ives. "There is a lingering worry that the bitcoin sideshow could overshadow the overall EV growth story playing out for Tesla in 2021 and beyond in the eyes of the street," Ives explained. In recent days, the swift drop in bitcoin has likely helped fuel a decline in shares of Tesla. Bitcoin has declined by more than 20% from its recent high of more than $58,000, and shares of Tesla have fallen more...read more...