Technology

Tesla made $ 101 million in profit, but not on the sale of the car


Tesla profited from buying and selling Bitcoin, not electric cars, and went against the company’s original value.

Electric car company Tesla has just released its first quarter financial report. According to the report, Tesla’s revenue in the past quarter reached 10.39 billion USD, 74% higher than the same period last year. Tesla’s net profit reached $ 438 million.

Besides, information related to Bitcoin is also very interested. Notable detail in the financial statements of Tesla is the profit from the sale of Bitcoin reached 101 million USD.

The Bitcoin investment made Tesla profitable

At the beginning of February, Tesla said the company bought the equivalent amount of Bitcoin 1.5 billion USDAt the same time, accept car payments with this cryptocurrency.

In the cash flow report, Tesla notes 1.5 billion USD buy into “digital assets”, at the same time 272 million USD from selling digital assets. Elsewhere, Tesla said it took note 101 million USD Contribution to profits from the sale of Bitcoin.

Tesla business condom UK 1

Tesla has been accepting payments in Bitcoin since February. The company also said that the sale of Bitcoin, receiving more than $ 100 million in profit, is to demonstrate the liquidity of the cryptocurrency.

According to the CNBCThese numbers show that Tesla was profitable 101 million USD from the difference between the buying and selling price of Bitcoin in the first quarter.

“Bitcoin has proven to be a good decision. It is a form where we can store cash that is not in regular use while getting a small profit back. We still intend to keep Bitcoin long.” According to Tesla Chief Financial Officer Zachary Kirkhorn.

On his Twitter, Elon Musk explained to a user that Tesla sold 10% of its Bitcoin holdings to “demonstrate Bitcoin’s liquidity as an alternative to cash on its balance sheet” .

Despite being an electric car company, the vehicle aimed at reducing emissions, owning Bitcoin makes Tesla go against the goal of protecting the environment.

Bitcoin is profitable, but Tesla should focus on making electric cars

According to the FortuneFrom the numbers published by Tesla, it can be estimated that they made a 59% return on Bitcoin sales. Chief Financial Officer Zach Kirkhorn said the amount of Bitcoin sold by the end of March. From the price of Bitcoin at that time, it can be estimated that the company sold about 4,800 Bitcoin.

As such, Tesla still holds around 38,000 bitcoins, worth buying 1.3 billion USD. That amount of bitcoins is more valuable now 2 billion USD. As such, the amount of Bitcoin that Tesla holds alone has increased in value roughly 750 million USD, not to mention the profit 101 million USD due to selling the previous price difference.

According to a Tesla representative, the company obtained Bitcoin from the sale of the car. The numbers in the books show that Tesla has made a fortune 2 million USD in Bitcoin from customers who buy electric vehicles. This is equivalent to about 40 customers buying the Model 3, at the list price 51,000 USD.

Business condom Tesla brother 2

The sale of nearly 200,000 electric cars in the past quarter did not bring Tesla as much profit as the money it spent to buy and “surf” Bitcoin. Photo: Tesla.

Fortune says keeping or selling small amounts of Bitcoin is more profitable for Tesla than selling electric cars. The company has been making electric cars since 2008, but in the last few months it has almost always been mentioned in the same cryptocurrency.

Tesla’s profit in the first quarter was 533 million USD, which includes 519 million USD revenue from the sale of emissions certificates, and 101 million USD from Bitcoin. Thus, this company is still at a loss $ 87 million from all activities of selling cars, batteries and services.

The decision to stick with Bitcoin, even if profitable, can also make it difficult for Tesla investors to believe in the future. This is the factor that helps investors buy shares of Tesla, causing the company’s value to grow 8 times in 2020.

“Musk is a brilliant, individualistic leader but distracted by the reckless Bitcoin name. He should refocus, and stick with cars that can change the world,” the author said. Shawn Tully’s Fortune comment.

According to the Zing / Fortune

Will Elon Musk and Tesla move into the smartphone business?

The Tesla Model π concept has quickly gained attention when it assimilated with Starlink, an electric brain-computer connection and can also be used to mine Elon Musk’s Marscoin.

.

Leave a Reply

Your email address will not be published. Required fields are marked *