2 November 2024
Tesla Made $10.4 Billion In Bitcoin Sale
Tesla Motors reported on Monday that they sold a portion of their bitcoin holdings in the first quarter of 2021 which generated net proceeds of $272 million.
They showed a 30-page slide with quarterly financial results of Tesla. The company noted a positive impact with gains of $101 million as a result of its Bitcoin sale.
"Year over year, positive impacts from volume growth, regulatory credit revenue growth, gross margin improvement driven by further product cost reductions and sale of Bitcoin ($101M positive impact, net of related impairments, in Restructuring & Other line), were mainly offset by a lower ASP, increased SBC, additional supply chain costs, R&D investments and other items. Model S and Model X changeover costs negatively impacted both gross profit as well as R&D expenses."
In the company’s cash flow statement, they said "proceeds from sales of digital assets" were valued at $272 million.
Back in February, Tesla made headlines after acquiring $1.5 billion worth of Bitcoin. During that time, it amounted to 7.7% of Tesla's gross cash position. Tesla also announced accepting bitcoin as payment without converting it into fiat currency.
Keeping its cryptocurrency activity aside, Tesla gained a net income of $438 million during the quarter setting a new all-time high. Its per-share earnings were recorded to 93 cents on revenue of $10.39 billion. The company expecting vehicle delivery growth to exceed 50% this year which means a minimum of 750,000 vehicle deliveries for 2021.
Disclaimer: The author’s views and opinions are for informational purposes only and do not constitute financial, investment, or other advice.
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