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Tesla Reports $51 Million in Bitcoin-Related Impairments in Q3

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Wed, 10/20/2021 - 20:10
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Alex Dovbnya
Tesla has announced its Q3 earnings
Tesla Reports $51 Million in Bitcoin-Related Impairments in Q3
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According to Tesla’s Q3 earnings presentation, it managed to achieve its best-ever net income of $2.093 billion. 

Yet, the e-car manufacturer registered Bitcoin-related impairments of $51 million during the third quarter.

Tesla neither sold nor bought more coins in Q3. 

The company initially announced its mammoth $1.5 billion Bitcoin buy in February and later started accepting BTC payments, which were then halted in May due to environmental concerns.

Tesla sold 10 percent of its Bitcoin in Q1 to test the flagship crypto’s liquidity. It left its position unchanged in Q2 but was forced to report an impartment loss of $23 million due to the Bitcoin price downturn.

Related
Elon Musk Says Tesla Will "Most Likely" Resume Accepting Bitcoin
As reported by U.Today, Bitcoin soared to a new all-time high of $67,016 earlier today, which means that the recently reported impairments are no longer relevant. 

In June, CEO Elon Musk reaffirmed his commitment to the largest cryptocurrency despite being critical of its energy-intensive proof-of-work algorithm.

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About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets, can be contacted at alex.dovbnya@u.today.