market tesla has decided to sell 75% of its bitcoin holdings and turn them into fiat in the second quarter earnings report Tesla recorded a 2.6 billion dollar profit but it doesn’t look like any of it will be attributed to bitcoin gains in February of 2021 tesla announced that it had purchased 1.5 billion dollars’ worth of bitcoin in a filing with the securities and exchange commission the company said it bought the bitcoin for more flexibility to further diversify and maximize returns on our cash when the news broke of tesla buying bitcoin
the price of bitcoin jumped 17% to 44% in 2022 also in 2021 tesla announced that they would stop accepting bitcoin as payment only two months after stating they would accept bitcoin as payment while the off-and-on relationship between tesla and bitcoin might put bitcoin in a bad light especially the skeptics there is more to the reasoning for a 75% sell-off during an investor call Elon himself stated that the sell-off should not be taken as some verdict on bitcoin when tesla announced its purchase of bitcoin in February of 2021 tesla’s stock was trading at approximately 863 dollars.
tesla’s current stock price is 742 a 15% decrease CEO Elon musk alluded that the market conditions are a big motivating factor to liquidate 75% of their bitcoin inflation and the overall economic downturn has affected many and Tesla is not immune. the company reported that it made 2.26 billion in profit this quarter around a 31% decrease from last quarter when it posted profits of 3.3 billion the profit was earned on 16.9 billion dollars in revenue which is also down from quarter one where the company reported bringing in 18.7 billion while the numbers are down from quarter to quarter the company is still more profitable than a year ago second quarter of 2021.
in second quarter of 2021 the company reported that it made 1.1 billion on 11 point billion dollars in revenue it appears that the downtrend of revenue and profit in conjunction with the instability of China has cost tesla to be more comfortable in fiat than bitcoin Tesla’s car production decreased from quarter one and in its earnings report tesla says it faced limited production and shutdowns in shanghai for the majority of the quarter but that it continued to ramp up production at its new facilities in Berlin and Austin, Texas Elon stated the reason we sold a bunch of our bitcoin holdings was that we were certain as to when the coveted lockdowns in China would alleviate so it is important for us to maximize our cash position in addition to the difficulties with China production tesla also reported increased prices and everything from raw materials to logistics none of this should come as a surprise to Elon as he has been hinting at a recession since December of 2021 more definitively in late May early June.
Elon stated yes but this is a good thing it has been raining money on fools for too long some bankruptcies need to happen also all the coveted stay-at-home stuff has tricked people into thinking that you don’t need to work hard rude awakening inbound Tesla dumps bitcoin
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