As Bitcoin tumbled to a fresh low and Elon Musk boasted ‘diamond hands,’ implying Tesla won’t sell, below is a commentary from Samuel Indyk, analyst at Investing.com
Q1 2021 hedge fund letters, conferences and more
Tesla's Diamond Hands
"Elon Musk is renowned for not playing by the rulebook but the likelihood of him flip-flopping and selling Tesla’s Bitcoin holdings seems slim. Musk runs the risk of upsetting the SEC again if Tesla begins offloading Bitcoin after previously saying that Tesla has no plans to sell the cryptocurrency in recent social media posts.
"Tesla only made a profit in the first quarter thanks to sales of Bitcoin, and Tesla’s share price may now be inextricably linked to the price of the cryptocurrency.
"With vehicle sales appearing to slow in China and some of the more mature EV markets such as Scandinavia, Tesla may once again need help to turn a profit by selling the cryptocurrency. However, with the price of Bitcoin almost 50% lower than its all-time high, Tesla’s opportunity to profit on crypto sales appears less likely."
