ELON CASHED OUT ON BITCOIN BEFORE TESLA
Elon musk might have sold the Tesla BTC holdings to prevent the company from going bankrupt.
Elon Musk once admitted that Tesla was on the verge of collapse before it started production of its new car, the Model 3. In late 2017, he also warned employees of his other company, SpaceX, about the company’s potential failure if its engineers could not resolve their issues with the company’s new engine, the Raptor 2.
Musk sought to clarify his position regarding the company’s investment in Bitcoin on Wednesday, saying that he had no plans to leave the cryptocurrency industry. However, he might have accidentally opened a new can of worms.
During Tesla’s quarterly earnings call, Musk sought to clarify his position regarding Bitcoin, saying that the company was not taking it as a verdict on the cryptocurrency industry. He explained that the company was still concerned about its liquidity. The words “concerned about the company’s liquidity” should be an immediate red flag.
Despite the company’s cash problems, Musk was still able to convince investors that the company was still in a strong position. The primary concern of the company’s shareholders was its cash position following the production shutdowns at its factory in China.
Despite the company’s cash problems, Musk was still able to convince investors that Tesla was still in a strong position. He noted that the company was on track to achieve its goal of increasing its sales by 50% to 1.4 million cars in 2022. The company’s shares were able to bounce back after the earnings call, with a 7% increase in Thursday’s trading session.
The comments made by Musk were troubling, as it shows that the company is still concerned about its cash position. Even though it has a robust balance sheet, it does not have enough money to cover its funding requirements. In 2021, when it doubled its annual CAPEX spending to build two new facilities, it only invested around $6 billion in cash.
It is difficult to determine how concerned Tesla’s shareholders should be about the company’s cash position due to the way Musk is known to exaggerate. In a recent interview, he revealed that his plants in Texas and Germany were “gigantic money furnaces.” He also stated that the automakers are desperate to go bankrupt due to the company’s heavy capital-intensive business model.
Due to the way Musk is known to exaggerate, some investors are more likely to buy Tesla than others. They are either investors who think that the company will eventually overtake Apple as the world’s most valuable company or people who believe that it’s the next Theranos.