On Feb 8, Tesla, a major electric car manufacturer owned by Elon Musk, announced its BTC (Bitcoin) purchased worth 1.5B. In a report by The New York Times, this was disclosed in Tesla’s annual report submitted to the US SEC. The announcement has immediately circled within the crypto community sending the price of BTC (Bitcoin) to a recent price rally. On Feb 9, BTC (Bitcoin) recorded its newest all-time high after breaching the $48K mark.
Elon Musk Influence on Crypto Performance
It can be recalled that he was actively promoting DOGE (dogecoin) in his recent tweets. And he did it not only once but many times. In July 2020, he tweeted “It’s inevitable” with an image of Shiba Inu engulfing the global financial system. The DOGE (dogecoin) price increased by 14% at that time. In December 2020, Elon Musk tweeted “One Word: Doge” and the altcoin price rose to 20%. Again, on Feb 4, he made a series of tweets about dogecoin resulting in a 50% increase in the crypto’s trading volume. From merely trading at $0.03, its price jumped to $0.05. And just when everyone thought it was over, on Feb 8, Elon Musk came up with another tweet about DOGE (dogecoin). This time he was joined by KISS rocker Gene Simmons, rapper Snoop Dogg and a group of Reddit traders. And for the first time, its price surged to $0.08 which is a 100% increase from its previous price.
But BTC (Bitcoin) has become his newest favorite which is highly evident in his recent purchase of the cryptocurrency. On Jan. 29, he added BTC (bitcoin) to his Twitter bio which resulted in a price hike at $37,783. But during his recent interview on social app Clubhouse, he shared his thoughts about owning BTC (bitcoin). He stated that he could have purchased the cryptocurrency eight years ago.
“I do at this point think bitcoin is a good thing. I’m late to the party, but I am a supporter of bitcoin”
With his proven track as an influencer in the crypto market, the bitcoin community is itching to tap him to further establish the dominance of the cryptocurrency. His recent statement about BTC (bitcoin) has disheartened most BTC (bitcoin) supporters. But alas, the announcement about Tesla’s BTC (bitcoin) purchase has sent euphoria to all BTC (bitcoin) hodlers including institutions. Michael Saylor, a well-known BTC (bitcoin) staunch supporter, in his recent tweet thanked Elon Musk for adding bitcoin to Tesla’s balance sheet.
Elon Musk’s recent move was highly celebrated on Twitter and media outlets. But was it just a diversionary tactic?
Elon Musk Falling Out with China
On Feb. 8, Tesla was summoned by Chinese authorities regarding consumer complaints on quality issues. Five departments including the State Administration for Market Regulation interviewed Tesla.
“Tesla Motors (Beijing) Co., Ltd. and Tesla (Shanghai) Co., Ltd. are required to strictly abide by Chinese laws and regulations, strengthen internal management, implement the main responsibility of corporate quality and safety, effectively maintain social public safety, and effectively protect consumers’ legal rights and interests.”
In its statement in connection with the action taken by the Chinese authorities, Tesla stated:
“Tesla sincerely accepts the guidance of the government and will conduct a deep reflection on the company’s shortcomings in operations. We will strictly abide by the laws and regulators in China and always respect consumer rights.”
Tesla has long enjoyed a harmonious relationship with China being the first foreign automaker that has been approved to operate a wholly-owned plant in the country. It started its operation in Shanghai on May 8, 2018, with a total capital of 100 million yuan.
Surprisingly, the announcement by the China government coincided with Tesla’s purchase of BTC (bitcoin).
Has Elon Musk lost his touch with Chinese regulators? Was his recent move meant to overshadow the bad publicity against Tesla? Speculations were circulating that his recent BTC (bitcoin) purchase was to divert attention away from Tesla’s recent clash with regulators in China. Or was it? Or he is simply the man “who can make gold with everything he touches, or tweets should we say”.