InvestorPlace – Stock market news, inventory and trading
Tesla shares (NASDAQ: TSLA) traded declined this week after the company reported a blow to first-quarter earnings. The negative market reaction came after Tesla reported more profits from the bitcoin sale (CCC: BTC-USD) than from the sale. cars.
I’m not one of the TSLAQ people on Twitter who think Tesla is widespread fraud.
However, I think Elon Musk will do everything he can say as legal to increase the percentage value of Tesla and its brand. Cryptocurrency is the best tool that someone like Musk can use to stir up Tesla’s finances and replace its effects quarterly.
Let’s take a look at the numbers first. Tesla rattled Wall Street when the company announced it bought $1. 5 billion in Bitcoin in February. Yahoo Finance estimates that the average value of Tesla Bitcoin is $34,200.
This week, Tesla announced that it had sold about 10% of its Bitcoin holdings and made a profit of $101 million in the first quarter. In the same quarter, Tesla reported a net GAAP revenue stream of $439 million. Credits to quarter sales.
Taking $439 million in net source of revenue and subtracting $101 million from Bitcoin trading and $518 million from regulatory credit sales, Tesla’s real car sales business generated a net loss of $181 million for the quarter.
By the way, it’s vital to note that Tesla’s regulatory credit sales are expected to fall to $0 once the competition deploys its own electric vehicle models.
If Musk cared about the environment, instead of making himself known or making money, he would oppose Bitcoin.
So why is it in Bitcoin?
One explanation for why Tesla exchanges Bitcoin is that it generates so much anticipation online, especially on social media. Musk is the master of online storytelling control. Whenever a negative report is published on Tesla’s quality issues or poor generation performance, Musk can simply tweet about Bitcoin or Dogecoin (CCC: DOGE-USD) and negative headlines will be buried.
If Musk is a true genius, I think this understanding of fashion marketing is his true genius. There’s nothing illegal about it, and I don’t actually blame it. When Tesla first announced its bitcoin investment in February, it matched the quality. control issues with Tesla cars in China.
“Despite record first-quarter earnings, Tesla’s sales in China are expected to fall dramatically in the coming months due to a public relations crisis that has seriously jeopardized the image of the popular brand in a different way,” the Global Times tweeted.
A Googled Tesla stock search that day produced all sorts of titles about selling Bitcoin through Tesla. There were no headlines on quality issues in China. Like I said, genius.
In addition to an on-demand distraction, I think the cryptocurrency provides Musk with some other tool to distort Tesla’s finances. This quarter, Tesla can sell Bitcoin to make a profit and increase its profits. Each quarter will provide an exclusive opportunity for Tesla to buy or sell Bitcoin for profit or loss. These transactions will increase your overall figures or give the company an excuse for the lack of objectives.
Musk said Tesla had sold Bitcoin to “test Bitcoin liquidity as an option to keep money on the balance sheet. “That’s absurd to say given that Tesla would never have invested $1. 5 billion in Bitcoin in the top position if it had had considerations about its liquidity. .
But Bitcoin investors think for a moment that Tesla bought Bitcoin because Musk believes in the bull’s long-term thesis. He sees Bitcoin and its subscribers as a useful team for managing Tesla’s online beliefs and public finances.
At the time of publication, Wayne Duggan held a position at GM.
Wayne Duggan is a contributor to US News.
The message of how Elon Musk is distorted with Bitcoin gave the first impression on InvestorPlace.