So, when I first heard of Tesla selling 10% of their Bitcoin stake, I was conflicted and didn't know how to take it. This was even after seeing Elon's Twitter response stating that this was proof of liquidity.
I slept on it. I do my best thinking while sleeping. And I woke up without conflict in my mind. In fact I was quite excited (no, not in that way!).
Here's my theory:
Elon is a very, very smart man. In 2018, he negotiated with the board a compensation plan that included no salary but provided for the option to acquire Tesla shares based on a schedule that includes 12 tranche's that are unlocked based on Tesla's performance. Upon unlocking the final tranche, he would beneficially own (including shares he already owns) 28.3% of the outstanding TSLA shares (~$188Bbased on today's prices!).
Now Elon has basically met these requirements, the biggest goal was to get TSLA to a $650B market cap, and they're at $666B now. To unlock the remaining 6 tranches, he basically has to hodl their market cap above $650B for a period of time.
So let's say you are a smart Elon. You see power of Bitcoin in the face of the most fragile and manipulated economy to ever exist in the history of man… You see the growing competition in the electric vehicle space… You want to not only maintain your current market cap but smash it to the moon. You go to your board and tell them you want to convert a significant portion of their $20B war chest into Bitcoin. Now Elon wants to buy A LOT ("Are such large transactions even possible?"), but based on discussions, some goal posts are put into place (eerily similar to his compensation schedule). Their first purchase must be limited to $1.5B. It must hodl it's value over the length of a quarter AND must prove to be liquid in case TSLA needs the cash.
These goal posts have been met. Perhaps there's a few more that we're not aware of… But if the theory hodls true, meeting those goals will lead to LARGE future purchases of Bitcoin to add to their treasury….
But this is just my humble theory and your thoughts appreciated!