See More

Tesla Reported $101M Impairment Losses After $1.5B Investment in Bitcoin

1 min
Updated by Ryan Boltman
Join our Trading Community on Telegram

In Brief

  • Tesla reported $101 million impairment losses.
  • The company believes in the long-term potential of cryptocurrencies.
  • Tesla’s $1.5 billion Bitcoin investment was more than its research budget.
  • promo

In a recent 10-K filing, which is used to report a public company’s financial performance, Tesla revealed a $101 million loss in Bitcoin (BTC) investment. The electric vehicle company invested $1.5 billion in the first quarter of 2021, the report says.

Tesla noted in a filing with the US Securities and Exchanges Commission (SEC) that Bitcoin’s price fell below the price of the company’s purchase price, as the whole crypto market plunged. Furthermore, Elon Musk’s company had $128 million gains in Bitcoin for selling certain merchandise.

“We believe in the long-term potential of digital assets both as an investment and also as a liquid alternative to cash. As with any investment and consistent with how we manage fiat-based cash and cash equivalent accounts, we may increase or decrease our holdings of digital assets at any time based on the needs of the business and on our view of the market and environmental conditions,” the filing said.

Not the first impairment loss

In July, Tesla reported a $23 million impairment in the second quarter of 2021. According to CNBC, the initial $1.5 billion investment in Feb last year was “more than its entire quarterly research and development budget” and soon grew to $2.48 billion with the rise of Bitcoin price.

Moreover, the company reported a $2 billion operating income which came with $51 million impairment losses in the third quarter last year. It was Tesla’s “best ever” result to date.

What do you think about this subject? Write to us and tell us!

Top crypto projects in the US | July 2024
Harambe AI Harambe AI Explore
Uphold Uphold Explore
Exodus Exodus Explore
Coinbase Coinbase Explore
Chain GPT Chain GPT Explore
Top crypto projects in the US | July 2024
Harambe AI Harambe AI Explore
Uphold Uphold Explore
Exodus Exodus Explore
Coinbase Coinbase Explore
Chain GPT Chain GPT Explore
Top crypto projects in the US | July 2024

Trusted

Disclaimer

In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

Wahid.jpg
Wahid Pessarlay
Wahid loves to write, especially about Crypto and Blockchain. He started his blogging journey in 2017 and turned to crypto in 2019. Wahid is interested in tech, chess and DeFi. He aims to promote decentralization to everyone on the planet.
READ FULL BIO
Sponsored
Sponsored