Please ensure Javascript is enabled for purposes of website accessibility

Tesla Gets a Warning in China as it Loads Up on Bitcoin

By John Rosevear - Feb 8, 2021 at 9:25AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Here are the stories likely to move the electric vehicle maker's stock on Monday.

It's an eventful Monday morning for Tesla (TSLA 5.71%). Here are some of the stories making new as the U.S. stock markets open the week.

Tesla gets a China warning

Five Chinese government agencies, including the powerful State Administration for Market Regulation (SAMR), summoned Tesla executives to a meeting to remind the company that it must "strictly comply" with Chinese laws and regulations, a stern and significant warning by Chinese standards.

The move was prompted by several recent incidents reported in Chinese media, including battery fires, problems with over-the-air updates, and consumer complaints of unintended acceleration. 

The officials asked Tesla to strengthen its internal management controls, to ensure that its products are safe, and to protect consumer rights, according to a statement posted on SAMR's website. 

The Tesla logo on a Supercharger recharging unit.

Image source: Tesla.

Tesla's German factory faces "massive delay"

Tesla has said that it expects to begin production at its new factory in Germany this summer, but there are growing signs that the construction project is behind schedule. 

German auto-industry trade publication Automobilwoche reported that critical buildings on the site haven't yet been constructed, and that Tesla has yet to submit a building application for its on-site battery plant to the local government in Gruenheide, near Berlin. 

Tesla said last month that construction of the "Berlin Giga" factory was on schedule, and that it planned to begin production of the Model Y crossover SUV in July. 

The factory will eventually have the capacity to build about 500,000 vehicles per year. 

Tesla goes big on crypto as it prepares to accept bitcoin payments

Tesla said in a regulatory filing on Monday morning that it has bought $1.5 billion worth of bitcoin, an investment made for "more flexibility to further diversify and maximize returns on our cash." The company also said that it will soon start accepting payments in bitcoin for vehicles, making it the first major automaker to accept cryptocurrency. 

Bitcoin prices jumped after the news was released. 

Tesla had over $19 billion in cash on hand as of the end of 2019. 

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Tesla, Inc. Stock Quote
Tesla, Inc.
TSLA
$769.59 (5.71%) $41.59
Bitcoin Stock Quote
Bitcoin
BTC
$29,811.86 (0.02%) $5.59

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
345%
 
S&P 500 Returns
119%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/16/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.