Former Goldman CIO Urges Tesla to Get Out of Bitcoin as Stock Plunges 30 Percent

Former Goldman Sachs executive Gary Black, who has served as the chief investment officer of the bank's asset management unit, says that Tesla could reignite its fading momentum by getting out of its Bitcoin position in a recent tweet.

He is certain that the e-car manufacturer should use the cash from this sale to authorize a stock buyback.

While claiming that such a decision would find overwhelming support among Teslas shareholders, Black concedes that the company is “highly unlikely” to do away with its cryptocurrency trove.

Bitcoin has nothing to do with Teslas rout

Teslas stock has plunged over 30 percent since its announced $1.5 billion purchase on Feb. 8.

Image by tradingview.com

However, its sell-off obviously has nothing to do with the cryptocurrency that has already made it more profits than a whole year of car sales. In fact, all top electric vehicle stocks are under severe pressure as of now.

Stock market investors are currently concerned over rising bond yields that could threaten risk-on assets (particularly, such high-growth companies as Tesla).

Bitcoin and the tech-heavy Nasdaq Composite dived sharply after Federal Reserve Chairman Jerome Powell signaled that the central bank wouldnt hike interest rates earlier today.

The benchmark 10-year Treasury yield jumped above 1.5 percent earlier today following his speech.