We have investigated the structural transformation of fluorinated singlewalled nanotubes (SWNTs) induced by electron-beam irradiation during the transmission electron microscope observations. Heavily fluorinated SWNT bundles were systematically transformed into multiwall-like nanotubes by releasing fluorine atoms during electron-beam irradiation and even broken into two pieces of the capped graphitic structures. Such structural transformations at relatively low kinetic energy (< or = 300 keV) could be explained by the local strains induced by fluorination, where C-C bonds that were fluorine-attached became 1.53 A, a single bond similar to that of a diamond, from our density functional calculations. We propose a possible concerted pathway for the structural transformation of fluorinated SWNTs induced by electron-beam irradiation based on the experimental observations.