Tesla lost $ 170 million due to bitcoin

According to Tesla’s latest financial report for the third quarter of 2022, the company has invested $ 1.5 billion in the purchase of its flagship cryptocurrency since 2021. The largest electric car manufacturer also noted that the company’s loss in cryptocurrency amounted to $ 170 million. The losses were partially compensated by the sale of digital assets, as a result of which Tesla earned $ 64 million. Thus, the «net» financial loss of billionaire Elon Musk’s company has so far amounted to $ 106 million. Experts note that the cryptocurrency losses of the corporation did not affect its core business. Compared to the previous year, Tesla’s net profit increased by 169%.

It is worth reminding that the company’s balance sheet currently holds cryptocurrency worth $ 218 million. All digital assets are concentrated in bitcoins — approximately 11,366 BTC. Back in July, Tesla sold 75% of its bitcoins due to declining profits and production problems during the COVID-19 pandemic. As the company’s owner Elon Musk later explained, the sale of cryptocurrency was due to the need to increase liquidity during the period of anti-covid restrictions in China.

Recently, Elon Musk suggested that the economic downturn would continue until the spring of 2024.

How long do you think the recession will last

— Tesla Owners Silicon Valley (@teslaownersSV) October 21, 2022