Is Tesla’s Bitcoin investment risky to its reputation?
L’$ 1.5 billion investment in Bitcoin by Tesla it might be good for Elon Musk, but it is definitely risky for the company. This is what some investors, analysts and finance managers at some of the largest banks in the United States think.
Tesla’s Bitcoin investment could damage its reputation
Tesla’s bet to go “all-in” on cryptocurrencies could damage its reputation with customers and investors. In fact, the environmental impact of Bitcoin could go against Tesla’s ideology: a world that uses cleaner energy sources.
Some energy investors who have preferred to remain anonymous have stated that Bitcoin mining, “mining”, is a rather dirty business from an energy point of view.
China is home to most of the major Bitcoin miners in the world. This operation requires a lot of electricityconsidering that a single transaction consumes the energy equivalent of an American household in about 20 days. And China uses coal as its main source of energy. But the same is true in Russia, and some investors are wondering how Tesla will combine its idea of sustainability with investing in cryptocurrencies.
In the meantime, however, Bitcoin investors welcomed Tesla’s move, which has caused the value of the cryptocurrency to skyrocket. Despite this, many believe that the company has made a risky move due to theextreme volatility of cryptocurrency. This feature could impact not only Tesla’s profits, but also its customers if they used the currency to buy a car.
We will then see how the Tesla market will go. Although Elon Musk is indomitable and sometimes makes decisions a little over the top, he will surely have made his calculations before deciding to invest the equivalent ofentire research and development budget of the company in Bitcoin.