Tesla disappointed in cryptocurrency

US electric car maker Tesla has sold 75 percent of its nearly $1 billion worth of bitcoin portfolio. The investment turned out to be unprofitable and worsened the company’s quarterly results. This is stated in a recent report from the company.

Tesla became disillusioned with cryptocurrency due to the fact that assets were bought at a rate of 28 thousand per coin, and they had to be sold already at 23 thousand. According to Elon Musk, the head of the company, the sale was made to increase liquidity during the period of anti-covid restrictions in China, writes Forbes. Tesla has not sold any of its Dogecoin holdings. Musk urged not to perceive the sale of cryptocurrency as “some kind of verdict on bitcoin.”
Tesla by TradingView

In general, the manufacturer’s revenue fell from $18.76 billion in the previous quarter to $16.93 billion in the reporting quarter. Thus, a series of record earnings for several quarters in a row was interrupted.

In March 2021, Tesla announced that it had invested $1.5 billion in bitcoin and then began accepting it as payment for purchases for a while. However, in May of the same year, Elon Musk abandoned this decision due to the negative impact of mining on the environment. Later, the entrepreneur said that the company would resume accepting cryptocurrency payments only when half of all digital assets were produced on the basis of renewable energy sources (RES).