Tesla In New SEC Filing: ‘Believes In The Potential Of Digital Assets’

Tesla, the electric car firm, has taken a more definitive stance after months of contradictory messages from its CEO, deciding to leave the door open for future digital asset investments, according to a recent SEC filing.

“We believe in the long-term potential of digital assets both as an investment and also as a liquid alternative to cash,” Tesla’s quarterly report SEC filing said. 

Tesla reported $1.26 billion in digital asset holdings in its first quarter financial report last month, roughly same to its holdings at the end of the fourth quarter in 2021, when it made its first, and so far only, $1.5 billion bitcoin purchase. According to the document, the fair market value of its digital asset holdings as of March 31, 2022 is $1.96 billion.

Elon Musk, the CEO of Tesla, has had a public love-hate relationship with cryptocurrencies for over a year.

Musk declared on Twitter in March 2021, a month after Tesla purchased bitcoin

That the firm would accept bitcoin as a form of payment. Musk reneged on his prior remark less than two months later, saying in a tweet that Tesla would not take bitcoin owing to the cryptocurrency’s environmental impact.

Musk clarified in July 2021 that if bitcoin mining became more sustainable, he might examine incorporating it as a payment method. In an SEC filing in October, the corporation acknowledged that it was open to crypto payments.

Musk has long held an interest in a different cryptocurrency — the so-called meme coin Dogecoin. Tesla now accepts payments in Dogecoin on its online shop for select items, although its earnings report did not note any revenue from Dogecoin payments.

“As with any investment and consistent with how we manage fiat-based cash and cash-equivalent accounts, we may increase or decrease our holdings of digital assets at any time based on the needs of the business and our view of market and environmental conditions,” the quarterly filing said.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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