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Makes no sense that a car manufacturer is speculating on exotic financial investments. You buy shares of an automaker expecting cars and related stuff. It's th

Makes no sense that a car manufacturer is speculating on exotic financial investments. You buy shares of an automaker expecting cars and related stuff. It's the same that Tesla betting its capital in the Super Bowl.

jimmydorry 4y ago
Most of the other car manufacturers make a majority of their money on financing services rather than making and selling cars. How is Tesla parking money in Bitcoin much different when most of them are essentially atttempting to make money outside their specialty?
- JumpCrisscross 4y ago
  > How is Tesla parking money in Bitcoin much different when most of them are essentially atttempting to make money outside their specialty? Car manufacturing is cash intensive. When car companies finance car purchases, they’re rarely doing so off balance sheet. They aren’t parking money; when they felt the need to they historically returned it to shareholders. Tesla financed its Bitcoin wager off balance sheet. It lost cash on the adventure, cash which could have financed operations.
- Ekaros 4y ago
  Financing services as in gambling on market? Or making their products more easily bought? After all we are talking about products in most expensive things average buyer owns.
xyzzy123 4y ago
Some TSLA investors are in it for the car manufacturing and others are there for the lulz / meme stock value. Elon and bitcoin provide a lot of value and fun for the latter class of investor. Matt Levine (bloomberg) has some amusing but also thought provoking takes on this.
panick21_ 4y ago
As an investor I actually agree. However its not like this move risked the company or anything. So it was not that concerning at all. Actually I think they should have done smaller investment in bitcoin earlier. When they did it was pretty late already. That said, as an investor it actually took about 1000x more media attention then it actually mattered in the actual investment thesis. It made the Q end results a bit wonky but that's about it.

jimmydorry 4y ago

Most of the other car manufacturers make a majority of their money on financing services rather than making and selling cars. How is Tesla parking money in Bitcoin much different when most of them are essentially atttempting to make money outside their specialty?

JumpCrisscross 4y ago
> How is Tesla parking money in Bitcoin much different when most of them are essentially atttempting to make money outside their specialty? Car manufacturing is cash intensive. When car companies finance car purchases, they’re rarely doing so off balance sheet. They aren’t parking money; when they felt the need to they historically returned it to shareholders. Tesla financed its Bitcoin wager off balance sheet. It lost cash on the adventure, cash which could have financed operations.
Ekaros 4y ago
Financing services as in gambling on market? Or making their products more easily bought? After all we are talking about products in most expensive things average buyer owns.

xyzzy123 4y ago

Some TSLA investors are in it for the car manufacturing and others are there for the lulz / meme stock value. Elon and bitcoin provide a lot of value and fun for the latter class of investor. Matt Levine (bloomberg) has some amusing but also thought provoking takes on this.

panick21_ 4y ago

As an investor I actually agree. However its not like this move risked the company or anything. So it was not that concerning at all. Actually I think they should have done smaller investment in bitcoin earlier. When they did it was pretty late already. That said, as an investor it actually took about 1000x more media attention then it actually mattered in the actual investment thesis. It made the Q end results a bit wonky but that's about it.