Tesla sells the majority of its Bitcoin holdings

Date:21 July 2022 Author: Juandre

Tesla, which caused a stir when it disclosed a sizable investment in Bitcoin last year, has since sold off most of its shares.

Elon Musk’s electric car company sold 75% of its Bitcoin with a value of around $2 billion (R34 billion) at the end of 2021.

It is pulling back as the cryptocurrency’s value has plummeted, falling by more than 50% this year, according to BBC.com.

Tesla said it spent the $936 million (R15 billion) from its Bitcoin sales on conventional money.

Tesla shared the sale of the holdings as part of its regular quarterly update. It said Bitcoin was one of the factors that hurt its profitability.

However, the company reported a higher-than-expected profit for the three months to the end of June as price increases of its best-selling cars helped offset challenges, including lockdowns in China.

It also promised a “record-breaking second half” to the year.

Tesla said production at its factory in China rose to a monthly record as Covid-19 restrictions were lifted.

Mr Musk also said output increased at the company’s newer factories in Germany and the US.

He previously called the sites in Berlin and Austin, Texas “gigantic money furnaces”.

Tesla shares have fallen by almost 40% this year.

 

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