After the market leader in electric vehicles (EVs) topped profit projections for the second quarter, Tesla’s (NASDAQ:TSLA) stock is up today. But the company’s Q2 report may potentially include intriguing information regarding its partnership with Dogecoin (DOGE-USD).
For weeks, detractors had predicted that several manufacturing closures and supply-chain issues would have a detrimental impact on the business’s bottom line. Tesla, on the other hand, outperformed Wall Street forecasts for both sales and profits per share (EPS). But it also revealed an unexpected development: a huge infusion of cash from selling its Bitcoin (BTC-USD). Tesla did not attempt to sell any of its DOGE at the same time.
Let’s examine what this implies for the meme currency that Elon Musk popularized.
Does Tesla Support Dogecoin?
Elon Musk, the CEO of Tesla, has long been an outspoken advocate for cryptocurrencies, particularly Dogecoin. In fact, Musk gained the moniker “The Dogefather” for supporting the meme currency. Musk made it plain that he’s open to purchasing more Bitcoin in the future, despite selling off 75% of Tesla’s BTC holdings: “This should not be viewed as some conclusion on Bitcoin. Just because COVID shutdowns in China raised questions about the company’s overall solvency. And none of our Dogecoin has been sold.
Although the choice to sell Bitcoin was surprising, Tesla can understand it. Following the most recent meltdown, the season has been challenging for the cryptocurrency markets. Some analysts have made gloomy forecasts for the TSLA stock in light of the current drop, seeing it as another possible negative trigger. But as Musk pointed out, rather than the cryptocurrency, the business’s choice to sell was motivated by worries about the company.
It’s also hard to overlook the fact that Tesla kept their Dogecoin. BTC and DOGE have both decreased significantly over the last six months, however they have been slowly increasing over the last week. Telsa made a handsome profit of $936 million when it sold its Bitcoin, allaying some worries.
Nevertheless, we are still unsure of Tesla’s total Dogecoin holdings. Tesla “disclosed that it presently holds $218 million in digital assets after selling $963 million in Bitcoin,” according to TechCrunch. That $218 million’s leftover Bitcoin is probably the majority of that sum.
Tesla’s DOGE holdings could not be substantial enough to have made an impact if sold. However, supporting the pupcoin would also be consistent with Musk’s actions. He made sure to emphasize that Tesla didn’t sell Dogecoin, which says as much.
Meaning of This for DOGE
The future of Dogecoin has been in doubt since since Musk’s efforts to purchase Twitter (NYSE:TWTR) failed. The meme coin was predicted to reach new heights if the social media site were to be taken over, according to experts. Since Musk revealed his intentions to cancel the agreement, DOGE has been without any significant growth drivers.
But given that Tesla didn’t sell its Dogecoin, Musk could still think there’s opportunity for growth in the cryptocurrency. Experts predicted that DOGE will increase once again over the next months even before today’s announcement.