The pair have been thick as thieves of late, but Tesla CEO Elon Musk has promptly declared that it’s time for his company to part ways with Bitcoin.
Merely a day after it was reported that Tesla (NASDAQ: TSLA) sales in China had declined 27%, CEO Elon Musk hit investors with another bombshell:
Tesla and Bitcoin are splitting up…
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Is Tesla selling its Bitcoin holdings?
Well, no actually. In fact, the eccentric CEO was quick to point out that Tesla will not be closing out its total Bitcoin stake. This is probably due to the fact that the cryptocurrency provided the company with a $101 million profit in Q1 after it trimmed its position by just 10%. Better to keep that nest egg growing, I guess!
No, the split comes in the form of a very recent decision by Tesla to start accepting Bitcoin as payment for its products. Having only announced the move back in February, Elon Musk has backtracked that decision, citing environmental reasons in a tweet last night:
“Tesla has suspended vehicle purchases using Bitcoin. We are concerned about rapidly increasing use of fossil fuels for Bitcoin mining and transactions, especially coal, which has the worst emissions of any fuel… we intend to use it [Bitcoin] for transactions as soon as mining transitions to more sustainable energy.”
While it beggars belief that the man who wants to end fossil fuel usage for good wasn’t aware of the impact that crypto mining had on the planet, that is a discussion for another day. For now, Tesla investors need not concern themselves with this news.
Far too much ‘stock’ (pun intended) has been put on company announcements and crypto-related moves of late. While Bitcoin and the rest of the crypto posse are likely here to stay, this should have no bearing on Tesla as a business. Investors would do well to ignore such distractions and return to the EV makers fundamentals:
- How many cars is it selling?
- How profitable is it?
- What’s Elon up to on Twitter?
You know, the important stuff!
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