The shares of Tesla, one of the world's most popular companies, have been declining for more than a month. Many experts believe that the company is losing ground as its shares have been highly overvalued recently. Last year alone, Tesla's capitalization has grown more than 8 times. Notably, this result is not related anyhow to the financial results of the company. It is true that sales and production have increased, but not 8 times, and not even 2 times. Thus, many economists are calling the company's shares a bubble. However, there is nothing bad about the bubble concept. This name is given to the assets whose value is too high. And that is exactly what we can say about Tesla's shares right now. Yet, there is one interesting fact we would like to point out: Tesla's shares fell in sync with bitcoin. Bitcoin quotes began to plunge on April 14, and so did Tesla. Thus, the correlation is obvious. So, investors who want to deal only with an electric car company and not with bitcoin can blame Tesla's CEO for this. Recently, Elon Musk has been devoting too much time to cryptocurrencies, provoking either the growth or the fall of the digital asset.

Yesterday, Tesla opened the trade at an all-time low of $549 per share. This is the lowest value since March 5. The company's shares were trading lower than that only in November 2020. In general, given an 8-fold rise in 2020, this is not a critical decline, but the trend remains negative. Experts also note that not only Tesla shares are falling this month. The shares of other companies which are closely associated with bitcoin and the cryptocurrency segment are also declining. For example, the shares of Microstrategy, Square, and Coinbase are down, as well as the shares of cryptocurrency exchanges. This is especially true for Chinese companies, as the regulators in China have recently announced a ban on any financial services related to cryptocurrencies. Many investors expect the rollout of new bans. In addition, Elon Musk is constantly giving comments about bitcoin, provoking a fall in both cryptocurrencies and the shares of his own company.

Technically, Tesla shares have dropped by $207 over the past 5 weeks and are currently trading around $562 per share. At the moment, the level of $538, which is the low of March 5, serves as the support level for the price. If the price manages to overcome the $544 and $538 levels, then the quotes may drop even lower. Of course, a lot will depend on Musk's new statements in the near future. And there is no need to doubt that new comments will follow soon. Thus, we continue to closely monitor the background for bitcoin and Elon Musk himself.