Musk’s Tesla Now Sits on $2.5 Billion Worth of Bitcoin
Tesla, which reported its first-quarter earnings earlier this week, beating estimates, now has almost $2.5 billion worth of Bitcoin, according to a Securities and Exchange Commission filing.
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Elon Musk’s company said in February that it had purchased $1.5 billion of Bitcoin and would start accepting the crypto as a form of payment.
During the quarter, Tesla said it recorded $27 million of impairment losses on Bitcoin and also realized gains of $128 million through sales of the crypto, according to the filing. This added $101 million represents a fourth of Tesla’s net income for the quarter, which was $438 million, according to the filing.
In addition, the company said that “the fair market value of Bitcoin held as of March 31, 2021 was $2.48 billion.”
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In response to Barstool’s Dave Portnoy tweet that Musk used a “pump and dump” technique, Musk replied “I have not sold any of my Bitcoin. Tesla sold 10% of its holdings essentially to prove liquidity of Bitcoin as an alternative to holding cash on balance sheet,” according to his tweet.
The electric-vehicle company reported revenue of $10.3 billion, up 74% year over year, and earnings per share of $0.93, up 304% year over year.
The company also released its 2021 outlook, and said it plans to grow its manufacturing capacity as quickly as possible. “Over a multiyear horizon, we expect to achieve 50% average annual growth in vehicle deliveries. In some years we may grow faster, which we expect to be the case in 2021,” according to the letter.
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“We have sufficient liquidity to fund our product roadmap, long-term capacity expansion plans and other expenses. We expect our operating margin will continue to grow over time, continuing to reach industry-leading levels with capacity expansion and localization plans underway.”
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