Tesla Inc. CEO Elon Musk has given mixed signals several times about his stance on digital assets. Be that as it may, his electric car company Tesla Motors has taken a more definitive stance on digital assets. Tesla is choosing to leave the door open for further investment in digital assets. This was revealed in a recent filing with the SEC.
Tesla Believes in the Long-Term Potential of Digital Assets
The SEC filing indicated the following:
“We believe in the long-term potential of digital assets, both as an investment and as a liquid alternative to cash.”
Tesla reported $1.26 billion in holdings of digital assets last month in its first quarter earnings report. This is almost unchanged from its holdings at the end of the fourth quarter in 2021, when it released its first, and so far only, Bitcoin investment of $1.5 billion.
The fair market value of Tesla’s holdings of digital assets stood at $1.96 billion as of March 31, 2022, the filing said. However, it also indicated that it can “increase or shrink this asset based on the company’s need.”
Elon Musk’s Mixed Signals
In March 2021, a month after Tesla’s Bitcoin purchase, Musk announced via Twitter that the company would accept Bitcoin as a method of payment . Less than two months later, also in a tweet, Musk backtracked on his earlier statement, revealing that Tesla would no longer accept BTC due to the negative environmental impact of the king currency.
In July 2021, Musk clarified that if Bitcoin mining went in a sustainable direction, he would reconsider adding it as a payment method. In October, the company confirmed that it was leaving the door open for crypto payments in an SEC filing.
While Elon Musk has expressed mixed signals about Bitcoin, he has long been an outspoken fan of the well-known meme cryptocurrency Dogecoin (DOGE).
Tesla Motors also accepts payments in DOGE on its online store for select items. However, the earnings report did not mention any income from Dogecoin payments.