Bitcoin’s recent drop has led to a reduction in Tesla’s share price, reducing its value by more than $110 billion after the bitcoin market experienced its worst drop yet. Its CEO, Elon Musk, also suffered a huge decrease in his net worth.

Bitcoin fell as much as 17%, and its drop has made multiple investors drop their bitcoin assets in a bid to hedge their bets and protect their assets. 

Tesla’s shares fell as much as 7.3%

The self-driving car company experienced a 7.3% drop in share value as a result of its $1.5 billion investment in Bitcoin-based assets. 

Other public exchange-traded funds like ARK Innovation ETF and ARK Autonomous Technology & Robotics ETF, lost 8.9% and 7.3% of their value respectively this week. A trader, when asked about his thoughts about Tesla, said he currently had doubts about the company as its investment in bitcoin could work against it. 

The drop in Bitcoin value is part of a wider loss in market value that has seen multiple investors trade valuable stocks.  

Analyst attribute Tesla’s share drop to Reddit investors 

Analysts from Barclays explained in a note this week that the drop in the company’s shares might be as a result of a reduction of talks around the stock in Reddit investment groups. They added the company was only talked about 2-3times in the past weeks. 

Tesla still remains a top company to invest in, and it is among the S&P 500 index’s most valuable stocks. According to data gleaned from its past performance in the stock market, Tesla is expected to bounce back in value and trade at a higher value. 

Some investors are skeptical about the stock because of the company’s recent decision to invest in Bitcoin, but its mission statement to produce emission-free cars shows the company will be around for a long time.