New financial filings issued on Wednesday show that Tesla, a manufacturer of electric vehicles, liquidated most of its Bitcoin holdings during the second quarter.
According to Tesla’s quarterly report, “As of the end of Q2, we have converted approximately 75% of our Bitcoin purchases into fiat currency.” “Conversions in Q2 added $936M of cash to our balance sheet.”
What about Dogecoins?
To increase its cash position “given the unpredictability of the COVID lockdowns in China,” Tesla CEO Elon Musk stated during the firm’s earnings call that the business sold most of its bitcoin. Tesla, he continued, is, however, open to increasing its exposure to bitcoin in the future, so “this should not be viewed as some conclusion on Bitcoin.” In addition, Musk said that none of Tesla’s Dogecoins had been sold.
Immediately after the earnings report’s release, bitcoin’s price dropped by around 1.7 percent to $23,300, but it quickly rose to its prior levels when Musk made a statement during the earnings call.
According to Reuters, a news agency, Musk said, “It was important for us to maximize our cash position…We are certainly open to increasing our bitcoin holdings in the future, so this should not be taken as some verdict on bitcoin. It’s just that we were concerned about overall liquidity for the company.”
Tesla has kept the sale price for its Bitcoin holdings a secret. However, Musk did say that Tesla would be open to boosting its holdings of cryptocurrencies in the future.
What about the business health of Tesla?
Elon Musk and Tesla appear to be having a difficult financial time.
Elon Musk personally traded billions of dollars worth of business shares for the now-messy Twitter acquisition. He is now involved in litigation. A “very terrible feeling” about the economy led Elon Musk also to announce major layoffs, which now appear to have damaged the company’s autopilot team. Additionally, earlier this month, Tesla lost its AI chief.
On the positive side, it appears that Tesla’s partnership with Uber and Hertz to rent out EVs to drivers is successful.
