Is Tesla a better investment now it has $1.5B (+20%) in Bitcoin?

[Deleted User]

I'd be concerned that Tesla becomes a company that moves its financial muscle for short end gains. 
We know that ended for Woodford.

Qubit

Better.   And won't be the last S&P500 company to do so with a percentage of their balance sheet this year.  

planteria

jimpwarsop said:How difficult is it to create Bitcoin ?

very. in answer to RichTips original question, i think it's a better investment, yes. an asset on the balance sheet with such a track record, bearing in mind it's been bought with cash which has been allocated without leaving the business short, is likely to be positive. and as you mention, further to MicroStrategy, Square and now Tesla, other large quoted companies are likely to follow.

Apodemus

How will the Bitcoin appear on the balance sheet, though?   Is it Cash or an Investment Asset?  Valued at cost, or market value at year-end?  And will it be used as cash to conduct financial transactions across international boundaries?

[Deleted User]

Bubble one and bubble two, which one will pop first?

thenewcomer

why is bitcoin finite? why cannot mine above the set limit?

AnotherJoe

jimpwarsop said:

AnotherJoe said:

He's equally likely to say he's sold it in 3 months. 

I'm holding, the Bitcoin is an irrelevance as far as I'm concerned. It's not even 10% their cash. 

Just don't buy Dogecoin, which he also tweets about. For technical reasons, that cannot rise since it's so easy to create new ones 

How difficult is it to create Bitcoin ?

Very, and increasingly harder, since the algorithm is designed to make it so., if you count 'difficulty' by the cost of the electricity, and time, which are the only meaningful measures.
As an analogy, its "easy" to factor a hundred billion digit number to see if its prime or not, just keep dividing it by other smaller numbers. You could do it with a pencil and paper. However that could take millions of years and use a huge amount of energy to do so.

benbay001

planteria said:

jimpwarsop said:How difficult is it to create Bitcoin ?

very. in answer to RichTips original question, i think it's a better investment, yes. an asset on the balance sheet with such a track record, bearing in mind it's been bought with cash which has been allocated without leaving the business short, is likely to be positive. and as you mention, further to MicroStrategy, Square and now Tesla, other large quoted companies are likely to follow.

If Tesla has spare cash that it cant find a use for, it should be returned to the shareholders by way of a dividend or a buy back.
I have heard Tesla called many things

• Car company
• Battery company
• Charging company
• Taxi company

I dont think they should also become an investment company aswell.
Tesla had many red flags as a company to invest in, this is just another.
People are going to get seriously burnt with Tesla, its just a matter of when.

Thrugelmir

Tesla's ESG credentials look increasingly poor on the back of this decision. 

HansOndabush

Thrugelmir said:

Tesla's ESG credentials look increasingly poor on the back of this decision. 

Exactly. What's the point of having low emission cars if you invest in Bitcoin that consumes more power than entire countries?