Topic: Elon and his bag of tricks - page 2. (Read 297 times)

I think Op asked a good question and that looks educative in itself with the responses too at least the logic and understanding of the reason for the sale is getting clearer for most people and if nothing on that, that they have office in Shanghai, although with offices in other countries. The curiosity however is if they sell such amount in btc to either finance the challenges of covid-19 on Tesla branch office in Shanghai and the covid-19 outbreak persist, what are they going to do ? Shut it down or what ? Selling more btc?

Regardless if them buying bitcoin makes them somewhat a "threat" or not, they totally have the complete rights to buy and sell their bitcoin as much as they want. People are complaining as if what they did was illegal. People need to get a grip.

Musk is a manipulator and he's doing what he knows best, which is being a troll on twitter. He manipulated dogecoin, bitcoin, his twitter deal... I couldn't care less about musk and his ideas, but I feel sorry for people who bought because of him and got caught off guard by his sales. Learn from it! Musk will only tell after he's done it and you, the followers, will be the sheep he takes advantage of.
If somebody is now buying Tesla stock because of his tweets, I can only feel sorry for you, because Elon holds so much stock that he can crash the market if he decides to, especially if he persuades his brother to sell with him. By holding Tesla stock you become dependent on these two people. I don't like to depend on anyone but myself.

Not every business wont really ending up on constant profits or making cash all the time and as we do know and we arent blind that pandemic hits hard and no matter how known or reputable your company is but still it wont really be an exemption into these kind of conditions.
It is really just people cant really believe that his losing up billions just because he had made out some manipulative act in the past where people doesnt really seem to believe
on what he's experiencing now into his companies.
So its his company then it would really be just his rights on what he would gonna do and same into those coins that he had bought if he had that kind of plan on where
he needs funds then its none of our business if he bag sold those coins that he had.

Elon's said he's losing billions on the Shanghai and other Tesla factories because they all were forced to curtail production from the lockdowns. I don't think this is insincere, nearly every company has had COVID lockdowns slow down sales. If a large portion of your business relies on Chinese manufacturing, it certainly seems within the realm of possibility that your company is hemorrhaging money when the CCP shuts everything down.

Selling Bitcoin to raise cash though is foolish. Surely there were better ways to raise capital.

Not just Elon any business-minded person will do what it takes to sustain their business especially during serious economic crises like this.  You could clearly see there was a reason for the sale, I mean why sell now when they had the chance to sell higher a few months back! After really thinking about it, I feel they did what they had to do and which isn't a big deal because btc price was not too affected by the news. Tesla is not the largest holder of btc and now that 75% of what they used to hold has been liquidated, they are like a tiny threat now. 

We have to stop speculating about bitcoin and Elon relationship because the 2.5% is not really a big drop to bitcoin's volatility range and 9% hike on the tesla shares is not also a big task, we can just assume all this thing as coincidence and stop giving him the attention he likes to get from the investment community.

Exactly! I don't think you should care or continue to care so much about Tesla and Elon musk unless you hold their stock. As far as I am concerned Elon will always do what is best for him and the survival of his companies and you too as an individual should consider and concern yourself with doing what is best for you and your survival financially instead of worrying if Tesla's recent development was in line to raise their trading price.

Doesn't change the fact that one of their big factories is at risk of closing. It definitely wouldn't kill the company but it would slow them down a good chunk.

As for it being justified or not, whatever. Their CFO wanted to manage risk and they indeed did made a financial decision in which they think selling bitcoin was the right move to do. In the end, I couldn't care less, and so should you unless you hold their stock.

It should be well received because TSLA is making electric cars. That's their main source of income. They shouldn't play games with the investors' money. If Elon wants to make crypto investments, he should either use his own funds or create a separate company which is about making crypto investments.


I have no idea. If you don't like or understand what Elon does, you should probably stay away from his stocks. Don't touch TSLA, problem solved. There are hundreds of other promising companies out there. Elon's TSLA isn't the only game.

True, however Tesla now uses four facilities that are fully operational. Only one is in China, while three are in the United States. And this is outside the other factories he has in Germany and Canada..
How do you justify his decision now?

1. Tesla has a huge factory in Shanghai, China
2. More lockdowns = less revenue from superchargers or car purchases in general
3. Probably risk control due to the non-zero chance of COVID making a comeback in most countries

Despite the uproar caused by Tesla's announcement last week that it has sold 75% of its Bitcoin, the corporation claims to have $222 million worth of "digital assets" as of the end of June on its balance sheet.

The new information was included in the company's quarterly report, which it submitted on Monday morning to the U.S. Securities and Exchange Commission.
A few days before submitting its complete earnings report to the SEC, a company will frequently issue a press release and hold an earnings call. Because of this, information of Tesla's sale of $736 million worth of Bitcoin on Wednesday spread before the firm provided any information.
During the company's earnings call on Wednesday, Tesla CEO Elon Musk added that the company had sold its Bitcoin to raise cash as COVID lockdowns in China continued.

Musk stated on the call last week that the reason for the sales was the uncertainty around the end of China's COVID lockdowns. Given the uncertainties surrounding COVID lockdowns in China, it was crucial for us to optimize our cash position.

But in the hour following the revelation, the price of one bitcoin fell by 2.5 percent, reaching $23,078.18 on Wednesday. According to CoinMarketCap, the largest cryptocurrency in the world by market capitalization has further declined and was currently selling at $21,969.29 per BTC.

Meanwhile, it appears that the news that Tesla had sold a significant amount of its Bitcoin was well received by its stockholders. Prior to the announcement, TSLA shares were trading at $742.50 at market closing on Wednesday. As of Monday afternoon, they had risen 9% to $812.16. According to Yahoo Finance, that is the highest the price of TSLA shares have been since early May.

https://decrypt.co/105923/elon-musk-tesla-holds-222m-digital-assets-after-dumping-bitcoin

My question is what is the relationship linking Tesla corporation and the COVID lockdowns in china?

Or was this just a well laid out plan to raise his trading prices?