• February 23, 2024

Tesla Reports Record Earnings, With A Bit Of Help From Bitcoin : NPR

The Tesla logo can be seen in its New York store on March 24th. The automaker posted record earnings on Monday, thanks in part to profit from the sale of Bitcoin. (Photo by John Smith / VIEWpress) VIEW press / Corbis via Getty Images Hide caption

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VIEW press / Corbis via Getty Images

The Tesla logo can be seen in its New York store on March 24th. The automaker posted record earnings on Monday, thanks in part to profit from the sale of Bitcoin. (Photo by John Smith / VIEWpress)

VIEW press / Corbis via Getty Images

Electric car maker Tesla posted record earnings this quarter, boosted significantly by speculation in cryptocurrencies.

The company announced net income of $ 438 million for the quarter, which, according to its quarterly earnings report, has a “positive impact” of $ 101 million on profits from Bitcoin sales.

The company invested $ 1.5 billion in the volatile cryptocurrency earlier this year, Then the company sold around ten percent of its stakes in order to generate this profit.

“Elon and I were looking for a place to store cash that wasn’t used right away and were trying to get some return on investment but also to maintain liquidity,” said Zach Kirkhorn, Tesla’s chief financial officer – and “Master of Coin”. – said on the winning call.

Kirkhorn also referred to the extremely low returns that conventional money-like investments currently offer.

“Bitcoin seemed like a good decision at the time and has proven to be a good decision so far – a good place to put some of our money that will not be used right away,” he said.

It doesn't get any more blurry than that: Tesla is investing $ 1.5 billion in Bitcoin

Elon Musk, CEO of Tesla, later said on twitter The sale was “essentially to demonstrate Bitcoin’s liquidity as an alternative to keeping cash on balance sheet” rather than taking advantage of the cryptocurrency’s appreciation.

Tesla also accepts cryptocurrency as a form of payment for its vehicles. Some reviewers have noted that the Ecological damage Bitcoin, which is very energy-intensive, is contrary to with the environmental friendliness of an electric vehicle.

Tesla also reported record production numbers for the quarter, despite other automakers struggling with the same supply chain issues.

As usual, the company also generated significant revenue from initiatives to promote electric vehicles. When other automakers don’t produce enough zero-emission vehicles to meet government requirements, they pay Tesla for “government credits” that allow Tesla’s battery-powered vehicles to count towards their own quotas.

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