The $1.5 billion investment in Bitcoin by Tesla couldn’t have any better timing- for the electric car company was about to slip into hot water. Just a few days back, several officials from the Chinese industry had been interrogating Tesla about the issues in its car regarding safety and quality. To be precise, it was the State Administration for Market Regulation from China which had put out this statement on the 8th of February. They spoke about the five different agencies that had been concerned regarding the abnormal accelerations in the electric cars, along with OTA upgrades and battery fires that had been reported by quite a few consumers.
Tesla’s Investment In Bitcoin: Coincidence, Or Motivated?
The statement further mentioned that the Chinese branch of Tesla Motors had to strictly abide by the laws and regulations under the Chinese government. This implies that the company would have to increase the efficiency of its management, as well as implementing the necessary requirement for corporate quality. In the end, it spoke of effectively protecting the legal interests and rights of Chinese consumers.
This announcement is remarkable because Tesla Motors always had a pretty cordial relationship with the Chinese government. Also, they were pretty much the first foreign automakers that were allowed to purchase a plant on Chinese territory. But the second point is even more interesting- this notice came just a few minutes before it was reported that Elon Musk’s company had put in such a large sum of money in Bitcoin.
The shares of Tesla shut down on Monday due to the Bitcoin purchase– which catapulted the value of Bitcoin to uncharted heights. Now some critics are of the opinion that the electric car company bought shares in cryptocurrency simply to divert the media from the notice- but that would require quite impeccable timing all the way.
