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