Tesla’s Bitcoin stash worth $1.24 billion
Tesla announced in the second quarter of that year that it had sold three-quarters of its bitcoin holdings, increasing cash on the balance sheet.
Quick overview
- Tesla sold three-quarters of its bitcoin holdings in Q2, significantly increasing its cash reserves.
- Bitcoin's value has nearly doubled since Tesla's exit, now worth over $117,000, leading to a substantial increase in Tesla's potential profits from its remaining holdings.
- Tesla's auto revenue has declined for the second consecutive quarter, causing an 8% drop in stock price and raising concerns about its competitive position.
- Despite a surge in the value of its digital assets, Tesla faces challenges from tariffs and the expiration of EV tax credits, indicating a need for financial support.
Live BTC/USD Chart
Tesla announced in the second quarter of that year that it had sold three-quarters of its bitcoin holdings, increasing cash on the balance sheet.
Bitcoin has experienced a significant rebound, fueled by the Trump administration’s efforts to loosen regulations and its pledge to create a strategic bitcoin reserve. At over $117,000, Bitcoin has nearly doubled in value since Tesla’s major exit at the end of the second quarter of 2022.
Based on estimates of Tesla’s 2021 purchases, its total bitcoin holdings might have been about $5 billion, not $1.24 billion. Today, the $936 million worth of bitcoin that Tesla converted to cash is now worth more than $3.5 billion.
Tesla’s earnings report showed a second straight decline in auto revenue, falling short of Wall Street estimates. The stock dropped 8% on Thursday and is down roughly 25% for the year—by far the largest decline among tech megacaps. In highly competitive and rapidly changing markets, Musk has made large, costly bets on Robotaxis and Optimus robots.
Tesla has also acknowledged that its core business could be hurt by President Donald Trump’s tariffs and the expiration of federal EV tax credits.
Tesla’s digital assets are valued at $1.24 billion, a significant surge from the $722 million a year ago. However, for Tesla, this figure represents a missed opportunity worth billions in potential profits. Bitcoin has surged by 80% and is approaching an all-time high within a year. When Bitcoin was worth only a small fraction of its current value in mid-2022, Tesla sold 75% of its holdings. Although Elon Musk, Tesla’s CEO, has said that humanoid robots and Robotaxis, not cryptocurrency investments, are the company’s future,
Tesla is currently facing challenges and could benefit from a financial boost.
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