Tesla lost $51 million due to the fall in the price of bitcoin in the third quarter of 2021
Tesla proclaimed profits of $1.3 billion from the acquisition of Bitcoins in early 2021, but in the Q3 of this year recorded a lack of $51 million due to a temporary drop in the value of the main cryptocurrency.
The electric-car maker reported revenue for the Q3 of 2021 increased 57% from $8.77 billion to $13.76 billion. Net profit for the quarter is $1.62 billion.
The weak point for the company turned out to be the previously purchased crypto assets, which suffered a total of $51 million due to the temporary reduction of Bitcoin. Thus, the amount invested by Tesla decreased from $1.31 billion in cryptocurrencies to $1.26 billion. If we talk about the scale of production, then in the Q3 of 2021, the automaker managed to increase capacity to roll off the assembly line more than 238,000 electric vehicles and deliver more than 240,000 cars, reaching an operating margin of 14.6%.
Over the past two quarters, the company has chosen not to make transactions with Bitcoins, citing environmental aspects that go against the tech giant's course. In February 2021, Elon Musk announced that Tesla had invested $1.5 billion in Bitcoin, but already in April, it sold 10% of the total. Although Musk himself said that henceforth the tech giant does not plan to "get rid" of its digital currency reserve.
The FASB believes that if Tesla defines cryptocurrencies as “an intangible asset with an unlimited life,” it is committed to promptly registering a drop in Bitcoin quotes. Of course, we are talking about cases when the main crypto asset of the market falls below the price at which the company acquired it.
Already in July 2021, Musk emphasized that due to the “exodus of Chinese miners” and other factors, the percentage of renewable energy use for Bitcoin mining equaled 50% or even exceeded this value. Consequently, in the future, the company may acquire even larger amounts of BTC.
If you decide to try your hand at the world of cryptocurrencies, do it with a trusted and reliable partner - BINANCE
CoinShark is not responsible for the content, accuracy, quality, advertising, products or any other content posted on the site. This article is for informational purposes, prepared on the basis of materials and information from open sources. Cryptocurrency is a high-risk asset, investments in it can lead to losses. Readers should do their own research before taking any action.