Tesla’s Bitcoin Investment Fails to Bring Coattail Effect
Tesla Inc.’s decline after reporting first-quarter results underscored its inability to ride the coattails of a profitable investment in Bitcoin. Shares of the electric-car maker slid 4.5% Tuesday, while the digital currency rose 3.6%. The contrast in performance is even sharper since Feb. 8, when Tesla disclosed the purchase of $1.5 billion in Bitcoin. From that day through Tuesday, Tesla sank 17% as the currency climbed more than 40%. The company made $101 million in the first quarter from Bitcoin sales. Chief Executive Officer Elon Musk tweeted that 10% of its holding was sold.