SharonWon
2022-07-22

$Tesla Motors(TSLA)$Today, investors are celebrating TSLA stock averting a potential negative catalyst. But while they do, it is important to keep in the mind the effect of Tesla selling off so much Bitcoin. Elon Musk has long been a vocal supporter of the crypto. In July 2021, he stated, “I might pump, but I don’t dump … I don’t believe in getting the price high and selling, and I would like to see Bitcoin succeed.”

Tesla reminded investors of its commitment to the crypto during its Q1 earnings report. “We believe in the long-term potential of digital assets both as an investment and also as a liquid alternative to cash,” it said. Shortly thereafter, Musk tweeted he would not be selling his crypto holdings.

This doesn’t mean that Musk has necessarily walked back his pro-crypto stances. But it does mean he saw an opportunity to help stop TSLA stock from falling at a critical moment. While Bitcoin has shed 37% of its value over the past six months as crypto markets plunged, it has risen more than 8% over the past week. Selling its BTC holding while the coin was on the rise made a lot of sense for Tesla, as it led to a more positive earnings report, keeping investors satisfied.

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Comments

  • highhand
    2022-07-22
    highhand
    let's put the champagne on ice for a year end euphoria to Tesla stock. 50% growth is the target.
  • All in Tesla
    2022-07-22
    All in Tesla
    Its good that they sold BTC.. just focus on the core biz
  • PandoraHaggai
    2022-07-25
    PandoraHaggai
    Good post, it's worth sharing with my friends.
  • PandoraHaggai
    2022-07-25
    PandoraHaggai
    Good post, it's worth sharing with my friends.
  • GoodLife99
    2022-07-22
    GoodLife99
    great move
  • AntLiew
    2022-07-22
    AntLiew
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