Tesla (TSLA) - Get Report shares rose Monday, even after five Chinese regulatory agencies said they had brought in officials of the electric-vehicle maker to demand improvement on the cars’ acceleration and batteries.
“Recently, the General Administration of Market Supervision and the Central Cyberspace Administration of China, the Ministry of Industry and Information Technology, the Ministry of Transport, and the Fire Rescue Bureau of the Ministry of Emergency Management have jointly held talks on the abnormal acceleration of consumer feedback, battery fires, and remote vehicle upgrades,” the State Administration of Market Regulation said in a statement.
“Tesla Motors (Beijing) Co. and Tesla (Shanghai) Co., Ltd. are required to strictly abide by Chinese laws and regulations, strengthen internal management, implement the main responsibility of corporate quality and safety, effectively maintain social public safety, and effectively protect consumers legally rights and interests.”
Tesla's Shanghai factory produced more than 140,000 vehicles out of Tesla’s about 500,000 global total last year.
Tesla’s stock recently traded at $874, up 2.6%, and it has nearly tripled in the six months through Friday. Investors have gone bonkers for EV shares and Tesla leads the pack.
Instead of focusing on the bearish news from China, investors are focusing on the news Tesla disclosed in an Securities and Exchange Commission filing: that it has purchased $1.5 billion of bitcoin.
“Thereafter [January 2021], we invested an aggregate $1.50 billion in bitcoin under [our] policy and may acquire and hold digital assets from time to time or long-term," Tesla said in the filing.
And it said it soon expected to accept bitcoin as a form of payment.