Musk’s Tesla Now Sits on $2.5 Billion Worth of Bitcoin

Tesla Motors dealership
Hadrian / Shutterstock.com

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.

See: Tesla Posts Record Revenue, Musk Announces He Will Host SNL
Find: Elon Musk’s Essential Tips for Aspiring Entrepreneurs 

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.”

See: Elon Musk’s Biggest Bets That Paid Off
Find: Is the IRS Coming for Your Bitcoin? 

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.

More From Your Money

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.

See: Elon Musk and More Billionaires Who Have Struck It Rich by Going Green
Find: Here’s a Bitcoin Timeline for Everything You Need to Know About the Cryptocurrency

“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.”

To top the news, CEO Elon Musk, aka the “Technoking” of Tesla, announced he would be hosting Saturday Night Live on May 8.

More From GOBankingRates

More From Your Money

About the Author

Yaël Bizouati-Kennedy is a former full-time financial journalist and has written for several publications, including Dow Jones, The Financial Times Group, Bloomberg and Business Insider. She also worked as a vice president/senior content writer for major NYC-based financial companies, including New York Life and MSCI. Yaël is now freelancing and most recently, she co-authored  the book “Blockchain for Medical Research: Accelerating Trust in Healthcare,” with Dr. Sean Manion. (CRC Press, April 2020) She holds two master’s degrees, including one in Journalism from New York University and one in Russian Studies from Université Toulouse-Jean Jaurès, France.

Untitled design (1)
Close popup The GBR Closer icon

Sending you timely financial stories that you can bank on.

Sign up for our daily newsletter for the latest financial news and trending topics.

Loading...
Please enter an email.
Please enter a valid email address.
There was an unknown error. Please try again later.

For our full Privacy Policy, click here.