Elon Musk, CEO of Tesla has an unmatched capacity to move mountains with a single keystroke. His tweets have caused abrupt and seismic changes in the market value of cryptocurrencies and other investments.
But is the outcome of Musk’s influence on the markets a representation of reality or more of a mirage?
- Various global financial markets platforms conducted a fresh study of more than 1,100 Americans in an effort to come to a more conclusive and cogent conclusion on the eccentric entrepreneur’s control over the financial markets.
- Over 60% of investors believe Musk to be the most powerful person in the world when it comes to financial markets, which demonstrates the extent of his impact. 33 percent of respondents, albeit being a small percentage, agreed that Musk had raised Tesla’s stock price based more on “dream” than “revolutionary vision.”
- The fact that roughly 60% of Tesla investors are more devoted to the CEO than to the business itself, though, may be more telling. Tesla has drawn a lot of interest from retail traders recently as one of the auto industry’s top innovators, according to Jesse Cohen. Fans and aficionados who support the company’s technology and constantly praise CEO Elon Musk with devotion, loyalty, and respect have helped it develop a passionate cult-like following.
- However, the corporation also has a lot of noisy detractors who claim the inventor of the electric vehicle could go bankrupt in the years to come because of its skyrocketing debt and huge cash burn. Like any investments, the stock’s wild price rise over the past ten years has been a wager on the future, said Cohen.
- So, if you want to buy Tesla stock, it helps to be a fan of roller coasters. That’s because the stock’s performance throughout the years has been characterised by violent, erratic price movements.
The extent of Musk’s profound impact is once more clearly seen in the bitcoin space.
It’s crucial to keep in mind that success won’t come quickly when working with a volatile company like Tesla. Investors should approach their investment with a long-term perspective, especially if they have a long-term outlook for the company.
Following his recent concerns about Bitcoin’s environmental impact, a sizable 49 percent of respondents claimed that Bitcoin’s environmental unfriendliness is a problem for them as investors. The study found that 30% of Bitcoin investors sold their holdings in the past month, with 20% of these investors blaming Elon Musk’s remarks on the environment for their decision.
Despite the fact that 38% of investors were unaware that Bitcoin was unfavourable to the environment prior to Musk’s comments, 72% of investors would support a more environmentally friendly cryptocurrency. When asked if Tesla CEO Elon Musk’s manipulation of cryptocurrency values has altered their opinion of that investment, 58 percent of respondents agreed that Musk “has too much power” and 40 percent indicated that cryptocurrencies in general “are too volatile.” Only 12 percent of respondents claimed that their confidence in digital currencies had increased as a result of Musk’s influence, while 24% disagreed.
Investors disagree 84 percent of the time that Musk will determine the direction of Bitcoin. His bitcoin tweets were rated as “annoying” by 33% of respondents, “entertaining” by 27%, and “funny” by 22%. Elon Musk, who was formerly acclaimed and crowned as the king of the cryptocurrency community, has just acquired some new foes as a result of his shocking U-turn on Bitcoin, according to Cohen.
An asset whose price is driven primarily by psychological feeling and momentum. “Is Elon Musk, in the end, a visionary or a fraud? The response is unreliable. Although his influence cannot be disputed, it states that only time will let us know.