{"id":1565710,"date":"2022-07-22T06:00:07","date_gmt":"2022-07-22T10:00:07","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1565710"},"modified":"2022-07-22T07:49:36","modified_gmt":"2022-07-22T11:49:36","slug":"tesla-sold-75-percent-of-its-bitcoin-holdings","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/tesla-sold-75-percent-of-its-bitcoin-holdings\/","title":{"rendered":"Tesla Sold 75 Percent of Its Bitcoin Holdings"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">16<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Ftesla-sold-75-percent-of-its-bitcoin-holdings%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1565710&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>After making a significant investment in Bitcoin last year, Tesla Motors sold 75 percent of its holdings in the second quarter, the company confirmed on July 20.<\/p>\n<p>Tesla converted $936 million worth of Bitcoin into fiat currency and added the cash to its balance sheet, according to the electric vehicle maker\u2019s earnings release (<a href=\"https:\/\/tesla-cdn.thron.com\/static\/EIUQEC_2022_Q2_Quarterly_Update_Deck_J8VLIK.pdf?xseo=&#038;response-content-disposition=inline%3Bfilename%3D%22tsla-q2-22-update.pdf%22\">pdf<\/a>). Tesla\u2019s crypto holdings total approximately 10,500 coins, or about $218 million, down from $1.2 billion.<\/p>\n<p>This is the first time that Tesla has touched the peer-to-peer decentralized virtual token since the first quarter of 2021. At the time, the tech giant acquired $1.5 billion in Bitcoin, sending prices through the roof. Tesla would later trim 10 percent of its holdings for $272 million in cash (<a href=\"https:\/\/tesla-cdn.thron.com\/static\/R3GJMT_TSLA_Q1_2021_Update_5KJWZA.pdf?xseo=&#038;response-content-disposition=inline%3Bfilename%3D%22TSLA-Q1-2021-Update.pdf%22\">pdf<\/a>).<\/p>\n<p>The latest decision was made in response to the growing uncertainties surrounding China\u2019s lockdowns amid COVID-19 outbreaks, says CEO <a href=\"https:\/\/www.theepochtimes.com\/t-elon-musk\">Elon Musk<\/a>.<\/p>\n<p>\u201cWe are certainly open to increasing our Bitcoin holdings in future, so this should not be taken as some verdict on Bitcoin,\u201d Musk said in an earnings <a href=\"https:\/\/app.saytechnologies.com\/tesla-2022-q2?filter=all&#038;sort=num_shares\">call<\/a> with analysts. \u201cIt\u2019s just that we were concerned about overall liquidity for the company, given COVID shutdowns in China.\u201d<\/p>\n<figure id=\"attachment_4592226\" class=\"wp-caption alignnone\"><a href=\"https:\/\/img.theepochtimes.com\/assets\/uploads\/2022\/07\/1.tagreuters.com2022binary_LYNXMPEI6A0SZ-FILEDIMAGE-1200x800.jpg\"><figcaption class=\"wp-caption-text\"><noscript><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-4592226 size-large\" src=\"https:\/\/img.theepochtimes.com\/assets\/uploads\/2022\/07\/1.tagreuters.com2022binary_LYNXMPEI6A0SZ-FILEDIMAGE-1200x800.jpg\" alt=\"Elon Musk\" width=\"640\" height=\"427\" \/><\/noscript><\/figcaption><\/a> Tesla Inc. CEO Elon Musk walks next to a screen showing an image of Tesla Model 3 car during an opening ceremony for Tesla China-made Model Y program in Shanghai on Jan. 7, 2020. (Aly Song\/Reuters)<\/figure>\n<p>He added that the company hadn\u2019t sold any of its Dogecoin positions.<\/p>\n<p>Bitcoin prices fell 0.94 percent, to $23,008, on July 21, while Dogecoin declined 1.51 percent, to $0.0691.<\/p>\n<p>The cryptocurrency market has recently enjoyed a relief rally, buoyed by investors optimistic that the Federal Reserve will adopt a less aggressive approach to interest rates at this month\u2019s Federal Open Market Committee policy meeting. The central bank\u2019s tightening efforts have applied exceptional pressure on risky assets, including cryptocurrencies.<\/p>\n<p>Although Bitcoin has plunged 53 percent year to date, it has advanced nearly 9 percent over the last month.<\/p>\n<p>\u201cWhat was less encouraging in the Tesla report is the update regarding its Bitcoin holdings,\u201d Ipek Ozkardeskaya, a senior analyst at Swissquote Bank, wrote in a morning note. \u201cTesla sold a big chunk of Bitcoin to add near a billion dollars to the company\u2019s balance sheet. No wonder the news reversed the positive momentum and sent Bitcoin back below the [$23,000] mark yesterday.\u201d<\/p>\n<p>Tesla turned bullish on Bitcoin and accepted it as a payment method for its models.<\/p>\n<p>However, after only a few months of this buying strategy, the company suspended vehicle purchases using Bitcoin over concerns \u201cabout rapidly increasing use of fossil fuels for Bitcoin mining and transactions, especially coal.\u201d But Tesla reaffirmed its commitment to cryptocurrency.<\/p>\n<p>\u201cTesla will not be selling any Bitcoin, and we intend to use it for transactions as soon as mining transitions to more sustainable energy,\u201d Musk wrote in a\u00a0<a href=\"https:\/\/twitter.com\/elonmusk\/status\/1392602041025843203?s=21\">tweet<\/a>. \u201cWe are also looking at other cryptocurrencies that use <1% of Bitcoin><\/p>\n<p>The news comes soon after a <a href=\"https:\/\/www.coindesk.com\/business\/2022\/07\/20\/tesla-could-face-a-460m-impairment-charge-on-its-bitcoin-holdings-in-q2\/\">report<\/a> from Barclays analyst Brian Johnson, who said\u00a0that Tesla could face up to a $460 million impairment charge should the business choose not to sell any of its Bitcoin holdings. By selling most of its holdings, Tesla cut its impairment charge for keeping the intangible asset on its books. Bitcoin\u2019s value is required to be written down when it tumbles, but it\u2019s restricted from being listed as a gain unless it\u2019s sold.<\/p>\n<h2>Other Tesla 2nd Quarter Notes<\/h2>\n<p>Tesla revealed that it\u2019s still contending with a plethora of supply-chain challenges due to the coronavirus pandemic. In addition to inflationary pressures, Tesla is dealing with shortages of car parts and semiconductor chips, resulting in its global vehicle inventory falling to three days\u2019 worth of supply, down from four days in the first quarter.<\/p>\n<p>Musk warned that customers buying a car now would face a longer wait time, and they might not receive their orders until sometime next year.<\/p>\n<p>\u201cProduction is resuming at limited levels, and we\u2019re working to get back to full production as quickly as possible,\u201d said Tesla CFO Zachary Kirkhorn. \u201cIt seems likely that we\u2019ll be able to produce one and a half million cars this year.\u201d<\/p>\n<p>On the subject of autonomous vehicles, Musk cautioned that developments in this sphere are taking longer than he had initially hoped.<\/p>\n<p>\u201cWith respect to full-self driving, of any technology development I\u2019ve ever been involved in, I\u2019ve never really seen more kind of false dawns where it seems like we\u2019re going to break through but we don\u2019t,\u201d Musk told analysts.<\/p>\n<p>Despite these setbacks, the company topped market estimates in the period ended March 31. Tesla posted $18.76 billion in revenues, compared to the projected $17.80 billion. Earnings per share came in at $3.22, higher than the forecast of $2.26. It also reported an 87 percent year-over-year increase in automotive revenue, climbing to $16.86 billion. Automotive gross margins also hit an all-time high of 32.9 percent, helping Tesla enjoy a gross profit of $5.54 billion in this primary segment.<\/p>\n<p>Tesla shares rose 9.78 percent on July 21 to $815. Year to date, the stock has dropped 33 percent.<\/p>\n<div class=\"author_wrapper\">\n<div class=\"one_author_block round\">\n<div class=\"top_row\">\n\t\t\t\t\t<a href=\"https:\/\/www.theepochtimes.com\/author-andrew-moran\"><img decoding=\"async\" src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2022\/07\/WEB_AndrewMoran.jpeg\" alt=\"Andrew Moran\" \/><\/a><\/p>\n<p>Follow<\/p>\n<\/div>\n<p>Andrew Moran covers business, economics, and finance. He has been a writer and reporter for more than a decade in Toronto, with bylines on Liberty Nation, Digital Journal, and Career Addict. He is also the author of &#8220;The War on Cash.&#8221;<\/p>\n<\/p><\/div>\n<\/div>\n<p><\/1%><\/p>\n","protected":false},"excerpt":{"rendered":"<p>After making a significant investment in Bitcoin last year, Tesla Motors sold 75 percent of its holdings in the second quarter, the company confirmed on July 20.Tesla converted $936 million<\/p>\n","protected":false},"author":1,"featured_media":2315279,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[],"class_list":["post-1565710","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1565710","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1565710"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1565710\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2315279"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1565710"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1565710"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1565710"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}