Investor's Corner
Did Elon Musk hint that Tesla has broken up with Bitcoin?
Tesla CEO Elon Musk tweeted several memes yesterday that seemed to indicate that the electric car company may have ended its relationship with the controversial cryptocurrency Bitcoin. Still, the CEO’s cryptic crypto tweets don’t outweigh past statements made by Musk in the past several weeks, including one that indicated Tesla wouldn’t let go of its Bitcoin stash but did it?
In December 2020, Tesla bought $1.5 billion worth of Bitcoin, a Cryptocurrency that gained mainstream notoriety several years ago after an outlandish and meteoric rise to a massive valuation. But, instead of looking at it as a simple investment, Tesla did what Tesla does: made it a statement and refined several of its’ executive’s job titles: Musk became Tesla’s Technoking, and CFO Zachary Kirkhorn assumed the role of “Master of Coin,” two titles that were made official in a filing with the SEC.
Tesla soon started accepting Bitcoin as a payment option for its cars and energy generation and storage products. It was a relatively bold move because while many large retailers and well-known companies accept Bitcoin as a payment option, being able to buy a vehicle with a direct payment to the manufacturer wasn’t overwhelmingly popular, even in 2021.
But soon after the Bitcoin barrage, Tesla backpedaled slightly. Just a few months after deciding to accept Bitcoin as payment, the company suspended this program, citing environmental concerns as the primary reasoning. “We are concerned about rapidly increasing use of fossil fuels for Bitcoin mining and transactions, especially coal, which has the worst emissions of any fuel,” Musk said in a statement on Twitter. “Cryptocurrency is a good idea on many levels, and we believe it has a promising future, but this cannot come at great cost to the environment.”
Elon Musk: Tesla is suspending Bitcoin payment options until it’s more sustainable
It was estimated at one point that Tesla had nearly doubled its investment thanks to a surge in Bitcoin’s cost. Its $1.5 billion investment had swelled to be worth $2.8 billion, according to some reports. This solidified Tesla’s decision in Musk’s statement that the company would not be letting go of its Bitcoin, pledging to hold on and reintroduce the ability to purchase products “as soon as mining transitions to more sustainable energy.” In addition, musk reassured Twitter followers on May 19th that the company has “Diamond Hands,” a term utilized for someone or something that is prepared to hold a position despite long or short-term volatility. Someone with Diamond Hands is usually someone who, despite setbacks in a stock or crypto’s price, plans to hold their position until an end goal is assumed.
However, June 3rd’s Twitter fiasco from Musk hinted that the company might have gotten rid of its Bitcoin holdings.
#Bitcoin ? pic.twitter.com/lNnEfMdtJf
— Elon Musk (@elonmusk) June 4, 2021
— Elon Musk (@elonmusk) June 4, 2021
Musk is a man known for a comedic sense of humor, a cryptic style of Tweeting, and a sarcastic but fun attitude about his business. If Tesla did sell any of its Bitcoin, it would be a considerable blow to the Crypto’s valuation, especially as this rumor has already circulated through the financial world. Bitcoin has dropped over 6% in the last 24 hours.
What do you think? Let us know in the comments below, or be sure to email me at joey@teslarati.com or on Twitter @KlenderJoey.
Lucid CEO Silvio Napoli responded to rumors of an imminent bankruptcy that was reportedly being mulled after a report stated the automaker was working with the firm AlixPartners to iron out its next steps.
The company felt a massive loss on Wall Street yesterday, as the report essentially pushed the stock down as much as 55 percent on Tuesday.
The report, published initially by Eletric-Vehicles.com, claimed Lucid was essentially in dire straits and was told by AlixPartners, a commonly used restructuring advisor, to either take shares private or file for Chapter 11 bankruptcy protection.
Lucid’s head of Communications, Nick Twork, immediately challenged the report and stated the company “has sufficient liquidity to carry its operations well into next year.”
Now, the company’s CEO is chiming in as well, stating that the report is “so far from the facts that they require a direct response.”
Napoli said:
“Lucid is not considering bankruptcy or a transaction to take the company private. Those reports are false. The Board did not explore either scenario. Period.
As disclosed in our most recent quarterly filing, Lucid has sufficient liquidity to fund its operations well into next year.
We work with outside advisors to improve operational performance and execution. They are not advising Lucid on a take-private transaction or bankruptcy, and any suggestion that they have recommended either course of action to management or the Board is false.
My priority is clear: turn this company around. That is where the leadership team and I are focused.
I look forward to providing a full update during our quarterly earnings call on August 4th.”
🚨 Lucid CEO Silvio Napoli calls rumors of financial issues “so far from the facts that they require a direct response.”
Read his full remarks here: https://t.co/t3Pg1NHvzy pic.twitter.com/LvHUPhO4Qf
— TESLARATI (@Teslarati) July 15, 2026
It seems pretty clear that Lucid is confident things will be okay, and, to be honest, they should not have much to worry about, especially considering the company has been backed by the Saudi Public Investment Fund (PIF) for years. It has solid financial backing, and its sales, while weak, are pretty much right on par with a company of this age.
Lucid also sent a Cease & Desist letter to the publication for their report.
Lucid shares have rebounded nicely and are up nearly 21 percent at the time of publication. As soon as the company dispelled the rumors of bankruptcy yesterday, the stock began to climb back toward more reasonable levels.
Electric vehicle maker Lucid Group has denied rumors of an imminent bankruptcy after a report from this morning sent the stock on a dramatic drop on Wall Street, seeing losses of more than 40 percent during trading hours.
Lucid’s Director of Communications, Nick Twork, responded to the report from Eletric-Vehicles.com, which stated the company’s restructuring advisor, AlixPartners, was asked to review two decisions: taking Lucid shares private or filing for Chapter 11 bankruptcy protection.
The report also claims AlixPartners told the Lucid board to “concentrate on Gravity production while improving its quality, and to temporarily hold back the Lucid Air, the sedan that has defined the company since its launch.”
Twork said:
$LCID The rumors are completely false. The company has sufficient liquidity to carry its operations well into next year, as recently published in its last quarterly filings, and it has not formed any special Board committee to explore the scenarios reported today. Our focus is…
— Nick Twork (@ntwork) July 14, 2026
Shares rebounded after the response to the report, halving its losses as the trading day neared 3 p.m. Eastern.
Lucid has struggled to get its sales off the ground and into more respectable numbers, but the company is in its early years, when things are hard to begin with. It is also backed by several notable investors, including the Saudi Public Investment Fund (PIF), which has nearly limitless money and likely would not ditch an investment of this size so soon.
Lucid shares were down just 14 percent at the time of publication, a far cry from the 55 percent its losses topped out at during the day.
Tesla received a price target upgrade just on the heels of what was a crazy successful quarter for its automotive business, as the company reported a delivery beat of over 15 percent for Q2.
Jefferies analysts are upping Tesla’s price target (NASDAQ: TSLA) to $400 from $375, while maintaining their “Hold” rating on shares, and the strong automotive deliveries from Q2 is a big reason. However, there are some other catalysts that Jefferies believes position Tesla for a strong position in the second half of the year.
Strong Deliveries
Tesla reported 480,000 deliveries for Q2, while Wall Street was between 395,000 and 405,000, as an overall consensus. It was an incredibly strong quarter from a delivery perspective, and Tesla sold well more than it produced during the three months.
Tesla crushes Wall Street expectations, beats delivery estimates by over 15 percent
While vehicle deliveries are not necessarily looked at in the light that they used to be, Tesla still maintains a lot of advantages for keeping deliveries strong. With the loss of the $7,500 EV Tax Credit last year, Tesla still maintains a strong demand case for its EVs.
Robotaxi Performance
Tesla has been operating Robotaxi for over a year now, as it launched in Austin in mid-2025. That program has expanded to Houston and Dallas, the San Francisco Bay Area, and, most recently, Miami, Florida, the suite’s first appearance in the Sunshine State.
While the Robotaxi suite is still in its early phases and Tesla is working through things like fleet size and wait times, the company has been able to undercut the pricing of its competitors and has a great safety record.
Merger Speculation with Tesla and SpaceX
This is perhaps the biggest topic that many are speaking about with Tesla and SpaceX, and it is the one thing that seems to be on the mind of every investor.
Jefferies warns that growing talk of a Tesla-SpaceX merger could cause Tesla stock to trade more like a SpaceX proxy, which may disconnect it from underlying automotive fundamentals. SpaceX has a lot going for it, especially its compute deals that have been widely publicized as of late.
Profitability in New Projects Could Take Some Time
Tesla has a few long-term ventures in the pipeline, most notably the Optimus project and Robotaxi, which is launched but will take several years to expand to a meaningful level that resonates with everyday people.
This is something that investors need to be careful of. Tesla’s projects could take some time to round out, so Jefferies advises that these may carry initial losses, rather than immediate profit. Seasoned Tesla investors have echoed something like this for a long time; they knew going in it would not be an open-and-shut strategy. It was going to take time.
These new projects are no different.
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Lucid CEO dispels any rumors of bankruptcy: ‘So far from the facts’
