Tesla’s honeymoon in China ends and will Tesla sell Bitcoin?

Tesla’s enthusiasm for Bitcoin was short-lived as the leading electric car maker suspended the Bitcoin payment option within a month of the announcement. The company’s CEO Elon Musk cited growing environmental concerns about Bitcoin as the main reason for BTC payments for Tesla cars. However, many have indicated that Musk’s claims about Bitcoin are not growing as Tesla still holds over $ 1 billion in BTC on its balance sheet.

Many theories began to flood the market, from pressure from investors to pressure from the US government on Tesla trying to find its way into the Chinese market. Given China’s recent crackdown on cryptocurrency and bitcoin mining companies, many believe Tesla is playing with the Communist Party line to keep its burgeoning business afloat.

The question now is: Tesla’s honeymoon in China is over and will Tesla sell Bitcoin?

Is Tesla’s honeymoon in China over?

China has become the largest consumer market in the world, and several well-known American brands are trying to establish a market there in order to secure cash flow and new consumers. So does Tesla, the electric car manufacturer that is building one of the largest production facilities in the country and will be delivering more than 30,000 cars made in China in June of this year.

However, a number of developments suggest that Tesla’s honeymoon in China may come to an end. The electric vehicle manufacturer in China has been going wrong for a long time in the past few months. The Chinese media have encountered some regulatory issues that are generating a lot of bad press for the company.

A recent report by Bloomberg said Tesla asked the Communist Party to moderate critical comments against the company on social media but received no help. If Tesla’s China deal is successful, it could also have an impact on its Bitcoin holdings.

Tesla’s honeymoon in China is over and will Tesla sell its Bitcoin (BTC)?

Tesla sold 10% of its $ 1.5 billion worth of Bitcoin purchases last quarter, and Musk said at the time it was done to test Bitcoin’s liquidity. The BTC sale also helped the electric vehicle maker increase profits in the first quarter of 2021, so it is very likely that Tesla could be forced to resell some of its Bitcoin holdings.

Musk has continued its attack on Bitcoin and sparked many long-controversial FUDs. The most recent was the scalability debate, in which he described BTC and ETH as slow.

At the time of the suspension of BTC payments to Tesla, Musk said they would reconsider if there is enough evidence that more than 50% of Bitcoin mining is green. A recent report from the Bitcoin Mining Council showed that almost 57% of BTC mining is from renewable sources with no comment from Musk. This proves that Musk’s anger with Bitcoin isn’t just environmental.

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