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Market discussions around how to utilize excess cash effectively have become pivotal. Tesla is accumulating cash through its rapid growth, yet decisions surrounding that cash are complicated. Investors traditionally expect companies to either retain cash for operational expenses, invest in capital projects, distribute dividends, or engage in stock buybacks. The emergence of Bitcoin as a treasury reserve asset adds a new layer to this equation.
Cern Basher, a chartered financial analyst running Brilliant Advice, emphasizes that while historically, companies have returned cash to shareholders primarily through dividends and buybacks, Bitcoin presents a contemporary option that warrants exploration.
Tesla's Cash Reserves: Analysis and Projections