Tesla sells off 75% of its Bitcoin stock at an estimated loss of $460 million

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Tesla on Wednesday released its Quarter 2 earnings for the year 2022 and the electric vehicle maker reported a $2.3 billion profit. For us, this seems like a huge amount, for Tesla and Elon Musk this was a loss. As per Gizmodo, this actually represents the business’s first sequential profit decline in almost a year. The report also states that Tesla converted 75 per cent of its Bitcoin stock into fiat money. By this, the company added $936 million in cash to the company balance sheets. According to a report from Coin Desk, the business apparently lost a tonne of money in the cryptocurrency crisis and might suffer a loss of up to $460 million from its bitcoin assets.

Watch | US auto maker General Motors confident of taking on Tesla in EVs

Tesla purchased the Bitcoin stock in February 2021, when the cryptocurrency was worth 35 per cent more than its current market value. 

Additionally, the EV company has reported quarterly revenues of $16.9 billion, a decrease of more than 10 per cent from $18.8 billion in the first quarter as margins contracted as a result of inflation and growing competition in the EV market.

Also read | Twitter says Elon Musk is ‘slow-walking’ trial over $44 billion deal

In its Quarterly update, Tesla said: “We continued to make significant progress across the business

during the second quarter of 2022. Though we faced certain challenges, including limited production and shutdowns in Shanghai for the majority of the quarter, we achieved an operating margin among the highest in the industry of 14.6%, positive free cash flow of $621M and ended the quarter with the highest vehicle production month in our history.”

Tesla has recently seen a number of setbacks, including the 22-day shutdown of its Shanghai factory, halts in production due to supply chain problems, and even several recalls due to the rising number of incidents involving its much-lauded “autopilot” feature.

(With inputs from agencies)

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