Tesla, TSLA & the Investment World: the Perpetual Investors' Roundtable

[lklundin]

Whoah. 1,5 billion isn't exactly pocket change either. Or couch change as some on this forum call it. I hope they don't lose their passpharase and keep it in a secure wallet

Seriously though I support them accepting BTC as payment for goods and services. Not exactly sure how I feel about them investing in it, but with a lot of cash on hand maybe it's better than just having it sit in some low yield position? With purchases like that they can actually move the market on BTC and accepting it as a "real" currency certainly goes a long way in accelrating acceptance of BTC. Does anyone know if any other big company is accepting BTC yet??

I struggle to see how BTC-investing/speculation falls within Tesla's area of interest, so reactions from some of the TMC financial heavy hitters would be very helpful here.

I guess the fact that Musk's tweets regarding crypto-currencies has been mostly about Dogecoin should rule out (justified) accusations of a BTC pump & dump scheme. Further, Tesla's disclosure of a BTC-investment (and stated intention of accepting BTC) is clearly seen as a powerful validation of BTC, which is up on the news - which I guess is unsurprising, so in that sense it would pay off for Tesla as short-term speculation. Maybe.

 

[Right_Said_Fred]

Investors seem to like it: premarket from -0,38% to +2,88% (876)

 

[Tes La Ferrari]

...reactions from some of the TMC financial heavy hitters would be very helpful here.

.

Yes, agreed. What say you, exalted mother of @Krugerrand ?

 

[Runarbt]

1.5B at X price means one TSLA at Y price means how much of a BTC?

Is 10 TSLA == 1 BTC?
42? 12345?

Any takes?

If you have 21.000 $TSLA shares - you own, maybe, one of Teslas BTCs.

Assumption -
Tesla shares: 950 million.
BTC: Lets say they bought at $33k ($1.5B), then Tesla has 45.000 BTCs.

 

[Singuy]

In a 10K report everything sucks, from warranty claims to falling foreign currencies, from upcoming competition to obsolete technology. A 10K lays out all possible risks, no matter how unlikely. So Bitcoin sucks too, because that’s what it’s supposed to do in a 10K. The board obviously thinks it doesn’t suck or they wouldn’t have made the decision.

Good point. Reads like tslaq.

 

[Nocturnal]

I struggle to see how BTC-investing/speculation falls within Tesla's area of interest, so reactions from some of the TMC financial heavy hitters would be very helpful here.

I guess the fact that Musk's tweets regarding crypto-currencies has been mostly about Dogecoin should rule out (justified) accusations of a BTC pump & dump scheme. Further, Tesla's disclosure of a BTC-investment (and stated intention of accepting BTC) is clearly seen as a powerful validation of BTC, which is up on the news - which I guess is unsurprising, so in that sense it would pay off for Tesla as short-term speculation. Maybe.

From a purely speculative perspective, Microstrategy completed their big bitcoin buy August 11th 2020. Notice the trend since, solely due to BTC gains and excitement. This Tesla news and BTC jump are giving them a 13% pre-market gain already.

 

[Pras]

CNBC is shitting on Elon pumping BTC in the run up to this, invoking SEC. Good old days!

Personally I think this is not strategic but tesla has surprised over years on many decisions that may look cringy but turn out to be good. We will see.

 

[theschnell]

I own $0 bitcoin, yet I still like this purchase by Tesla. Why? Because Elon does his research. If he thinks putting $1.5B into bitcoin is a good long-term move for Tesla, then I think he is probably right. It’s obviously not a get rich quick scheme for Tesla as that is not how Elon thinks. It’s a long-term strategy that Elon thinks is good for Tesla, and so far his judgement has been very good.

From a liquidity standpoint, this is not a large investment for Tesla, but in absolute value it obviously is.

I love it!

 

[Singuy]

Gm, F, and vw sees Tesla gained 16 billion in market cap after adding btc.

Gm, F and vw: "we will accept btc too! Okay boomer! Am I right?"

 

[amolina]

Tesla is going to pump Bitcoin. Bitcoin in turn is going to pump Tesla , so many institutions looking to hedge their balance sheets at the moment). Dayum. This sounds like vicious cycle of pumping is coming

 

[saniflash]

bitcoin = energy
tesla = energy

 

[WarpedOne]

Another what if ... What If at one point tesla decides to pay divident in BTC?

Another on (naked) shorts?

 

[Twooz]

I keep seeing people say that Tesla "gained" since having bought BTC at a lower price. But is it really a gain? Isn't it just another line on the balance sheet with X amount of BTC (UNTIL they sell?).

 

[ifish]

LMAO was that a mini-Cybertruck the lady was driving around in the Fiverr ad?

I'll ask her, I sold her a home at the Jersey shore. The screw up with the political ad (All Seasons Hotel) got her a ton of free press.

 

[ggies07]

Can you guys help me understand this a bit better? I understand when Elon sold Paypal, he didn't like the way it went after that. I understand that Bitcoin might be the future currency. I understand that digital currency WILL be the future. I understand that you could pay your car in the future with digital currency. BUT what I don't understand is why Tesla had to use 1.x billion of it's own money......

 

[serverguy247]

Likely they bought around the 33k mark (He tweeted "In retrospect, it was inevitable" and added #bitcoin to his twitter). That $1.5B is now worth around $2B already. That's another 500M in a few weeks. Bitcoiners also like to meme occasionally about buying Tesla's with their gains. This could be one hell of a feedback loop. Tesla buys bitcoin, announce that they accept it, Bitcoin "moons", Tesla is worth more, Bitcoiners and investors buy Teslas with their gains.... This will be fun to watch for sure!

 

[traxila]

Wow....those bitcoins I bought for 200.... I can use them now to buy Cybertrucks and Model S Plaids.

I am living in a simulation for sure.

 

[j6Lpi429@3j]

Someone explain to me how holding bitcoin fits in with transitioning the world to renewable energy? bitcoin is an environmental DISASTER when it comes to totally wasted energy on mining. and AFAIK the cost of a bitcoin transaction in energy terms is also catastrophic.
This is a very backwards step imho, unless someone can explain to me how this is *not* wasting energy.
When mankind is 100% renewable and climate change is a solved problem, then lets waste energy on pointless math to pump up crypto, but until then, this is a stupid, stupid move. Very disappointed.

 

[Christine69420]

If you have 21.000 $TSLA shares - you own, maybe, one of Teslas BTCs.

Assumption -
Tesla shares: 950 million.
BTC: Lets say they bought at $33k ($1.5B), then Tesla has 45.000 BTCs.

So no need for me to buy BTC directly then. Since I now own another of the many Tesla startups.

 

[SO16]

Someone explain to me how holding bitcoin fits in with transitioning the world to renewable energy? bitcoin is an environmental DISASTER when it comes to totally wasted energy on mining. and AFAIK the cost of a bitcoin transaction in energy terms is also catastrophic.
This is a very backwards step imho, unless someone can explain to me how this is *not* wasting energy.
When mankind is 100% renewable and climate change is a solved problem, then lets waste energy on pointless math to pump up crypto, but until then, this is a stupid, stupid move. Very disappointed.

Im no fan of BTC either (although I own a little). But if this encourages many more potential customers, maybe it isn’t all bad. And perhaps Tesla can start supplying solar to those large dirty BTC miners. Doubtful though.