Tesla’s Bitcoin Losses Cross $170 Million
- Blog
- October 27, 2022
Tesla’s Bitcoin Losses Cross $170 Million
Tesla, the electric vehicle (EV) maker, reportedly invested $1.5 billion in Bitcoin since 2021, according to the company’s latest quarterly financial report filed with the United States Securities and Exchange Commission.
The decline in the fair value of its investments, considering the current situation, has led to an unrealized loss of $170 million for the company. However, over the last two years, the company had made profits of about $64 million in Bitcoin investments that eased the net loss and brought it down to $106 million at the end of the third quarter.
Tesla’s losses did not have a significant impact on the fundamental operations of the company, according to the document. The EV maker had a 169% increase in earnings from $3.3 billion from the start of 2021 to September 2021. Tesla claims that it has only $218 million worth of Bitcoin in its coffers at the moment.
Tesla will have to take an impairment charge if the fair prices plummet, but it won’t adjust for price rises until they are sold. Investment gains are not taxed until they are sold, and losses may be offset against earnings to reduce tax bills.
Elon Musk, CEO of Tesla, is renowned in the cryptocurrency community for his advocacy of digital assets, penchant for meme coins like Dogecoin, and $44 billion Twitter acquisition deal. The billionaire has promised to do away with the spam and scam bots from the platforms, claiming that they ruin the product as the purchase is in progress.
