Tesla Inc: Another odd promise?
Elon Musk embraced the advocacy of cryptocurrencies. although the corporation has a troubled past with Bitcoin. The business declared that you may buy your Tesla entirely in Bitcoin in March 2021. But then the business abruptly withdrew the claim, stating that they would no longer accept Bitcoin payments owing to environmental concerns. Despite that declaration, Elon Musk said that the Tesla business had sizable stakes in Bitcoin, totaling more than $1.5 billion. Some of the company’s purchase orders were so substantial that they led to a 14% spike in Bitcoin in a single day.
Tesla sold 75% of its Bitcoin holdings during Q2 of 2022, a transaction that wasn’t disclosed at the time but was revealed when public documents were provided earlier this week. It may not seem like a big thing, but given that a single Tesla purchase order was sufficient to drive up the price of Bitcoin by 14%, it can now be concluded that these sales contributed to the Bitcoin crash that occurred in May and June.
Overall when asked why Tesla sold its Bitcoin Elon Musk just declared a belief in the future of cryptocurrencies. Nevertheless, because of ongoing COVID19 restrictions in China. Tesla needs to have more cash on hand. Elon Musk reportedly still has his own collection of Bitcoins. Although the corporation claimed it wished to store more cash. It is not obvious why. According to experts, Tesla is experiencing supply chain problems for parts made in China. As well as sales declines as a result of consumers’ inability to afford Teslas. Elon Musk made no further comments regarding Tesla’s future plans. However, it’s possible that the company needs the money for product development.
Tesla is thinking about opening a lithium refinery
With the demand for electric vehicles on the rise, there’s a new market emerging. Tesla is considering establishing a lithium refinery on Texas’ gulf coast. This is to ensure a steady supply of the essential component used in batteries. In an application submitted to the Texas Comptroller’s Office on August 22. Tesla stated that the possible battery-grade lithium hydroxide refining facility will process, refine, and manufacture battery materials. Elon Musk tweeted that the rising price of lithium may force Tesla to directly enter the mining and processing industries. Construction may start in the fourth quarter of 2022. Commercial production would begin by the end of 2024 if Tesla’s regulatory permission applications are approved.
As stated in its application, Tesla will support the supply chain for large-scale and electric vehicle batteries by transporting the finished product from the refinery to multiple battery manufacturing facilities by truck and rail. According to the company, It is also considering a rival Louisianan site for the project. In addition, the corporation must dramatically increase production in the second part of the year after production was negatively impacted by China’s lockdowns. Tesla delivered 254,695 automobiles in the second quarter, which is 17.9% fewer electric vehicles than in the first quarter.
