/Teslas stock swings up after bitcoin purchase disclosure and China regulator summons report – MarketWatch

Teslas stock swings up after bitcoin purchase disclosure and China regulator summons report – MarketWatch


Shares Tesla Inc.
TSLA,
+2.30%

seesawed back into positive territory, and was last up 1.7% in premarket trading, after reports about being summoned by Chinese regulators and a disclosure that it bought $1.5 billion worth of bitcoin. The electric vehicle maker also said in its 10-K filing with the Securities and Exchange Commission that it expects to start accepting bitcoin as a form of payment for products “in the near future,” subject to applicable laws. The purchase of bitcoin came after the company said it updated in January 2021 its investment policy to that it may invest a portion of its cash holdings into certain “alternative reserve assets,” including digital assets, gold and gold exchange-traded funds. The stock’s bounce followed an earlier dive, from a gain of as much as 1.1% to a decline of as much as 1.1%, after China’s State Administration for Market Regulation summoned Tesla on quality issues, as consumers complained about abnormal acceleration, battery fire and issues with its remote update system, The Wall Street Journal reported. Tesla’s stock gain comes as futures
ES00,
+0.51%

for the S&P 500
SPX,
+0.57%

rose 0.3% ahead of the open.

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