Tesla, the second largest electric vehicle manufacturer globally, exchanged 75 per cent of its holding in Bitcoin. In this article, we will discuss, "What Did Tesla's CEO Say About The Company's Holdings In Bitcoin During The Third Quarter?" start Let's
What Did Tesla's CEO Say About The Company's Holdings In Bitcoin During The Third Quarter?
CEO Elon Musk said on the company's second-quarter earnings call that the sale was made because of “the uncertainty of the COVID lockdowns in China,” but noted that Tesla is open to boosting its bitcoin exposure in the future and that the sale “should not be taken as some verdict on bitcoin." The price of bitcoin fell about 1.7% on the initial news at the time but soon regained its losses after Musk's remarks on the call.
How Tesla Ended Bitcoin Holding In The Second Quarter
Tesla had $1.26 billion in bitcoin (BTC) at the conclusion of the first three quarters, but just $218 million at the end of the second. According to the company, it realized a gain of $64 million on the sale of its holdings in the second quarter. However, this gain was offset by impairment charges on the remaining bitcoin, totaling $170 million, which resulted in a net cost to the company's profit and loss statement of $106 million.
Tesla made the announcement that it had bought $1.5 billion worth of bitcoin in February 2021, which drove up the price of bitcoin. Later in the first quarter, the corporation sold a 10% portion of its holdings in bitcoin, increasing its earnings by $272 million. Up until the second quarter of this year, it has not purchased or sold any additional bitcoin.
conclusion
In total, Tesla announced adjusted earnings per share for the third quarter of $1.05, exceeding the $1.00 consensus of analyst projections submitted to FactSet, on revenue of $21.45 billion, falling short of the $21.98 billion estimate. to $212.83 in after-hours trading Wednesday (16th, Nov).
What Did Tesla's CEO Say About The Company's Holdings In Bitcoin During The Third Quarter? - Hopefully, this article can help you to get some knowledge.
