The Tesla logo can be seen in its New York store on March 24th. The carmaker posted record earnings on Monday, thanks in part to profits from Bitcoin sales. (Photo by John Smith / VIEWpress)
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SEE press / Corbis via Getty Images
The Tesla logo can be seen in its New York store on March 24th. The carmaker posted record earnings on Monday, thanks in part to profits from Bitcoin sales. (Photo by John Smith / VIEWpress)
SEE press / Corbis via Getty Images
Tesla, an electric car maker, reported record earnings this quarter, with a significant boost due to speculation with the cryptocurrency.
The company announced $ 438 million in net revenue for the quarter, with a $ 101 million “positive impact” on Bitcoin sales profit, according to its quarterly earnings report.
The company has invested $ 1.5 billion in unstable cryptocurrency earlier this year, then sold about ten percent of its stake to make that profit, the company said.
“Elon and I were looking for a place to store cash that wasn’t used right away, trying to get some recovery from it, but also to preserve liquidity,” Zach Kirkhorn, Tesla’s chief financial officer – and “master of money” – said in a call for earnings.
Kirkhorn also cited the extremely low rate of return currently offered by conventional cash-like investments.
“Bitcoin seemed at the time, and so far it has proven to be a good decision – a good place to place some of our cash that is not used right away,” he said.
Later, Tesla CEO Elon Musk he said on Twitter that the sale was “basically to prove the liquidity of Bitcoin as an alternative to keeping cash in the balance sheet,” instead of using an estimate of the value of the cryptocurrency.
Tesla also accepts cryptocurrency as payment for its vehicles. Some critics have noted that environmental impact Bitcoin, which is very energy intensive, is contrary to with the environmental friendliness of the electric vehicle.
Tesla also reported record production data for this quarter, despite struggling with the same supply chain problems that other carmakers are struggling with.
As usual, the company also brought in significant revenue as a result of initiatives designed to strengthen electric vehicles. When other carmakers don’t produce enough zero-emission vehicles to meet government demands, Tesla pays “regulatory credits” that allow them to include Tesla’s battery vehicles in their quotas.
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