Elon Musk, Tesla, and Bitcoin Strategy: A Calculated Game

Elon Musk is not only a genius entrepreneur but also a savvy market manipulator. Tesla's journey with Bitcoin from 2021 to the present reflects not only an investment strategy but also a profound understanding of the cryptocurrency market. Let's review Tesla's key moves with Bitcoin and decode the intentions behind these decisions.

1. Tesla Buys Bitcoin (February 2021) On February 8, 2021, Tesla announced that it had purchased $1.5 billion in Bitcoin, marking one of the most significant financial moves in the company's history. This is not only a pure investment decision but also a strong statement of Musk's belief in cryptocurrency. This action immediately caused the price of Bitcoin to skyrocket, creating a ripple effect throughout the market.
2. Tesla Accepts Payment in Bitcoin (March 2021) On 24/3/2021, Elon Musk announced that Tesla is starting to accept Bitcoin as a payment method. This has taken Bitcoin one step further in becoming a legitimate asset in the eyes of traditional investors. This event has caused the price of Bitcoin to continue to rise, attracting significant attention from both individuals and organizations.
3. Tesla Sells a Portion of Bitcoin ( in April 2021 On April 26, 2021, Tesla revealed that they had sold 10% of their Bitcoin holdings, generating a profit of $272 million. Elon Musk then affirmed that this move was to demonstrate the liquidity of Bitcoin. However, this could be a test to gauge the market's reaction to Tesla's decisions.
4. Tesla Stops Accepting Bitcoin )May 2021( Just over a month after accepting Bitcoin, Tesla announced it would stop supporting payments in this currency, citing environmental issues related to Bitcoin mining. This decision caused a sharp decline in Bitcoin prices and raised doubts about the sustainability of Bitcoin as a mainstream payment method.
5. Tesla Holds Bitcoin on Balance Sheet )End of 2021( Although no longer accepting Bitcoin for car purchases, Tesla continues to hold a large amount of Bitcoin on its balance sheet. This indicates that the company still believes in the long-term potential of this asset, or may be waiting for the right time to execute further strategies.
6. Tesla Sells 75% of Bitcoin Holdings )July 2022( In the Q2/2022 financial report, Tesla announced that it had sold 75% of the Bitcoin it held, raising $936 million in cash. This decision came as the cryptocurrency market was experiencing a severe downturn, with Bitcoin prices plunging significantly from the 2021 peak. The question is: Who bought the Bitcoin that Tesla sold at a low price?
7. Tesla Still Holds a Small Amount of Bitcoin ) As of 2024( Despite having sold a large amount of Bitcoin, Tesla still holds a small amount on its balance sheet. As of the end of 2023, this figure is around 184 million USD, indicating that the company has not completely given up on its belief in cryptocurrency.
8. Elon Musk - The Market Influencer of Bitcoin? Clearly, Tesla's decisions are not just investments but also involve long-term strategic calculations. Tesla's buying and selling of Bitcoin at crucial times not only help the company make profits but can also have a strong impact on the market. It is not ruled out the possibility that Musk or related organizations have bought back the Bitcoin sold by Tesla at a low price to prepare for a new growth cycle. Conclusion Elon Musk and Tesla have shown how a large corporation can use Bitcoin as a strategic financial tool. Tesla's involvement in the cryptocurrency market not only signifies an investment, but also has a significant impact on the awareness and trust of global investors. The question remains: Will Elon Musk have more moves with Bitcoin in the future? Let's wait and see.