Tesla Loses Faith In Bitcoin

Tesla Loses Faith In Bitcoin
Daniel Johnston

over 1 year ago1 min

Mentioned in story

After Tesla announced earlier this month that it had delivered fewer-than-expected vehicles last quarter, investors were braced for a bleak quarterly earnings report.

They can breathe easy: the EV giant managed to offset those fewer deliveries by raising prices across its line of EVs. The price of Tesla’s long-range Model Y, for example, is up more than 30% since the start of 2021. That helped Tesla’s quarterly profit come in at $2.27 a share – well above the $1.81 analysts were expecting. Still, Tesla’s stock only jumped a muted 2%, with investors no doubt recognizing how much it’ll now have to deliver to meet its yearly target.

But it was the subject of bitcoin that really caught investors’ attention: Tesla said it sold 75% of its holdings last quarter, to the tune of nearly $1 billion. This is all the more notable considering it was one of the first companies to invest in the OG cryptocurrency, and said in May last year that it wouldn’t sell any given its “long-term potential”. So much for that: bitcoin’s down over 60% from its peak last year, and analysts suspect Tesla will take a near-$500 million hit – both from the sale and from the deteriorating value of its leftover holdings – as a result.

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