Elon Musk might use cryptocurrencies to take Tesla private

Elon Musk Could use Cryptocurrencies to Take Tesla Private

Blockchain, Cryptocurrencies, News

Elon Musk could use cryptocurrencies to take Tesla privateSelling of Tesla Inc. shares was reportedly halted on Friday as Elon Musk, CEO of Tesla announced in a tweet that the company could go private pretty soon.

In order to achieve his ambitions, the CEO could rely on cryptocurrency tokens, according to Haydar Haba of Andra Capital who runs a similar model of business. Even though Elon Musk claims to have “funding secured” for his proposed move, cryptocurrencies offer something that he cannot overlook.

In fact, it could even become the key strength of Tesla Inc. as Haydar Haba explained in an interview with Forbes.

A new way of buying shares

“I love Tesla, I love Elon Musk, and I think he should definitely consider the blockchain and tokenization of assets. We’ll call it the Tesla coin,” Haba said in the report.

Haba uses cryptocurrency to carry out investment in private tech companies that are likely to go public in the next few years. For Instance, a new Silicon Valley coin backed by his fund Andra capital is in the process of raising USD 1 billion in token sales.

If Elon Musk were to adopt this model for Tesla, then his venture will likely be the first to introduce the process of investing in the stock market using digital tokens instead of traditional shares. It is known that many firms are exploring this possibility, Tesla would have an edge since it is going private pretty soon.

Aside from setting the milestone with Tesla, it would allow the shares of the company to be easily transferred through blockchain rather than the traditional method which consumes a lot of money and time.

The right time to get on the crypto bandwagon

Haba predicts that within the next 20 years, “private and public (listings) will go away, and we’re only going to have one high-quality tokenized offering.” Now could be the best time for Elon and Tesla to get on the crypto bandwagon.

Tokenized company shares will have to battle with other cryptocurrencies for adoption as an investment channel, but Haba believes that they will prevail because tokenized shares are backed by “real growth assets.”

It may seem to be just advice to Musk, but it is one that could shape the future of cryptocurrencies and what they can be used for.

For the time being, Tesla Inc. will rely on a 3% to 5% stake in the company by Saudi Arabia’s sovereign wealth fund to carry out its vision to go private. That investment is reportedly worth around USD 2-3 billion, but the company can do a lot better if it turns to crypto tokens.

I love everything about crypto. Simply can’t wait to see how blockchain technology changes our world for the better.

Leave a Reply