Published , by Donovan Erskine
Tesla (TSLA) hit from Bitcoin sale & impairment amounted to $106 million in Q2 2022
In Tesla’s (TSLA) Q2 2022 earnings report, the company announced that it had liquidated 75 percent of its Bitcoin holdings. The move brought in $936 million for the company’s balance sheet, and helped its cashflow stay in the positive for the previous quarter. However, it was unknown how much this move cost the company overall. Tesla CEO Elon Musk followed up on that point during the Q2 2022 earnings call, providing a reason for the sale and revealing that Tesla took a $106 million hit on its Bitcoin liquidation.
The Tesla (TSLA) Q2 2022 earnings call took place not long after the company published its earnings report for the quarter. During the call, Tesla CEO Elon Musk was asked by investors for more details surrounding Tesla’s move to sell 75 percent of its Bitcoin. He directly cites the shutdown of the factory in Shanghai due to COVID-19 and its financial impact as a cause for the sale. “We were uncertain when the COVID lockdowns would end in China, so we sold Bitcoin.” He went on to share that Tesla has not sold any of its Dogecoin.
Musk also informed investors that Tesla lost a total of $106 million in parting with its Bitcoin. That said, it could probably be argued whether or not the move was worth it, seeing how strong of an impact it had on Tesla’s cash flow for Q2 2022. Musk also reassured that Tesla may look to add to its Bitcoin position in the future.
Elon Musk’s comments during Tesla’s latest earnings call clears up some questions that had been floating since the Q2 2022 earnings report went live. During the same call, Musk referred to the lithium refining business as a “license to print money.” Be sure to stay with Shacknews for more updates out of Tesla’s earnings call.