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Electric car maker Tesla reported record earnings this quarter, as its cryptocurrency speculation dramatically increased.
The company reported net income of $ 438 million for the quarter, with a “positive impact” of $ 101 million on Bitcoin selling profits, according to its quarterly earnings report.
The company invested $ 1.5 billion in the volatile cryptocurrency Earlier this year, It then sold about ten percent of its holdings to make that profit, the company said.
“Elon and I were looking for a place to store cash that was not used right away, trying to get a level of return on this, but also to maintain liquidity,” said Zach Kirkorn, Tesla CFO – and a “coin master” – said In a earnings call.
Kirkorne also noted the very low rate of return that traditional cash-like investments present today.
“Bitcoin looked like it was at the time, and so far has proven to be a good decision – a good place to put some of our money that wasn’t used right away,” he said.
Tesla CEO Elon Musk later He said on Twitter That the sale was “primarily to demonstrate Bitcoin’s liquidity as an alternative to keeping cash on the balance sheet”, rather than taking advantage of the cryptocurrency’s appreciation.
Tesla also accepts cryptocurrency as payment for its vehicles. Some critics note that Environmental impact Bitcoin, which is energy-intensive, At odds with With the environmental friendliness of the electric vehicle.
Tesla also announced record production numbers for the quarter, despite struggling with the same supply chain issues that other automakers grapple with.
As usual, the company has also generated significant revenues as a result of initiatives designed to promote electric vehicles. When other automakers do not produce enough zero-emissions cars to meet government requirements, they pay Tesla for “regulatory credits” that allow them to count battery-powered Tesla cars for their own rations.