Tesla's Q2 financial report of 2023 reveals that the company did not make any Bitcoin transactions during the quarter. The total value of its digital assets remains unchanged at $184 million.
This flat valuation extends over the past year, a result of current accounting standards that do not permit an increase in the valuation of digital assets when their prices surge.
The electric vehicle manufacturer first made headlines with its foray into the cryptocurrency market back in February 2021, when it invested a whopping $1.5 billion into Bitcoin.
The move sent waves through the industry, catapulting the flagship cryptocurrency to previously unscaled peaks.
However, the company's engagement with crypto turned sour in June 2022 when Tesla sold a considerable chunk of its Bitcoin holdings. Prior to that, it also stopped accepting the leading cryptocurrency as a means of payment due to environmental concerns.
Yuri MolchanThe company liquidated 75% of its Bitcoin assets, translating them into fiat currency and bolstering its cash reserves by an impressive $936 million.
While Tesla's Q2 report indicated a slight miss in sales — $23.33 billion versus the anticipated $23.39 billion — it still managed to meet the earnings per share (EPS) expectations of $0.85.
The company's shares fell further in after-hours trading. On top of the sales miss, there are lingering concerns over margins and a projected dip in Q3 production due to factory shutdowns.
Elon Musk's continued promises of robotaxis despite previous unmet pledges also cast a shadow on investor confidence.
Tesla's shares initially dropped 3.7% premarket and then fell by approximately 5% in after-hours trading.
Tomiwabold Olajide
Godfrey Benjamin
Dan Burgin