\n
Tesla already reported vehicle shipment numbers for the second quarter<\/a>, and now its full Q2 2022 financial report<\/a> (pdf) reveals it\u2019s dealing with inflation and the overall economic downturn, combined with a plunge in prices of Bitcoin and other cryptocurrencies. In the letter to investors, Tesla execs reveal the company has sold 75 percent of its Bitcoin holdings, adding $936 million in cash to its balance sheet. <\/p>\n
Last year, Tesla made a $1.5 billion investment in Bitcoin and announced that it would accept Bitcoin as payment. Tesla started accepting Bitcoin in late March<\/a>, then abruptly reversed itself in May<\/a>, just 49 days later. <\/p>\n
In the latest report, Tesla says the value of its remaining \u201cdigital assets\u201d is $218 million, which it had reported at around $1.2 billion in previous quarters. Last July, Tesla CEO Elon Musk said<\/a>, \u201cI might pump, but I don\u2019t dump … I definitely do not believe in getting the price high and selling or anything like that. I would like to see Bitcoin succeed.\u201d<\/p>\n
\n\u201cWe have not sold any of our Dogecoin\u201d<\/q><\/aside>\n<\/div>\nDuring an investor call<\/a>, Musk addressed the crypto selloff, saying that it \u201cshould not be taken as some verdict on Bitcoin.\u201d Instead, he said, Tesla sold its Bitcoin because it was \u201cconcerned about overall liquidity of the company given COVID shutdowns in China.\u201d Basically, Tesla needed the cash. \u201cWe have not sold any of our Dogecoin,\u201d Musk said, later going on to call cryptocurrency \u201ca sideshow to the sideshow.\u201d<\/p>\n
\n<\/iframe><\/p>\n<\/div>\n<p id=\"u8kTZQ\">When it comes to its business of making electric cars \u2014 where new competitors seem to be announced every day \u2014 and solar products, the company is reporting that it made $2.26 billion in profit this quarter, around a 31 percent decrease from last quarter when it posted profits of $3.3 billion. The profit was earned on $16.9 billion in revenue, which is also down from Q1, where the company reported bringing in $18.7 billion.  <\/p>\n<p id=\"b9htaf\">In terms of profitability, the company is still doing better than it did in Q2 2021, where it made $1.1 billion on $11.9 billion in revenue. The company attributes that to several factors, including \u201clower stock-based compensation expense,\u201d more vehicle deliveries compared to last year, and an improved average selling price. This is the first full quarter since Tesla <a href=\"https:\/\/www.theverge.com\/2022\/3\/15\/22978817\/tesla-ev-price-increase-raw-materials-inflation\">raised the prices on all of its cars<\/a> by as much as 10 percent, and it <a href=\"https:\/\/www.theverge.com\/2022\/6\/16\/23170714\/tesla-price-increase-june-2022-model-3-y-s\">raised prices again<\/a> on select models in June. Despite the price increases, the company has broken with its trend of earning more per car each quarter. In Q1, its gross automotive margin was 32.9 percent. This quarter, it was 27.9 percent. <\/p>\n<p id=\"EhJ7k4\">Tesla <a href=\"https:\/\/www.theverge.com\/2022\/7\/2\/23190004\/tesla-record-quarterly-deliveries-end-china-covid-shutdowns\">announced earlier this month<\/a> that its deliveries have slowed down, dropping by around 18 percent compared to Q1. It also produced around 15 percent fewer cars this quarter compared to last. In its earnings report, Tesla says it faced \u201climited production and shutdowns in Shanghai for the majority of the quarter\u201d but that it continued to ramp up production at its new facilities in Berlin and Austin, Texas.<\/p>\n<p id=\"axZdwV\">Other difficulties the automaker reports are increased prices in everything from raw materials to logistics, higher fixed costs per car due to the closures in Shanghai, and, of course, the aforementioned \u201cBitcoin impairment.\u201d<\/p>\n<p id=\"04P5MO\">Compared to last quarter, the company\u2019s revenue from selling regulatory credits to other automakers dropped by almost 50 percent. In Q1, it brought in $679 million from the credits, and in Q2, it made only $344 million. The credits help other companies that don\u2019t make enough \u201cclean\u201d vehicles to meet regulatory standards in the US and EU.<\/p>\n<p id=\"D3ijbj\">Culturally, it\u2019s been a turbulent quarter at Tesla. In late April, CEO Elon Musk sold billions of dollars worth of stock in the company to help pay for Twitter (a deal that has been <a href=\"https:\/\/www.theverge.com\/2022\/7\/8\/23201004\/twitter-to-sue-elon-musk-for-backing-out-of-merger\">a huge mess<\/a> and is now <a href=\"https:\/\/www.theverge.com\/2022\/7\/19\/23270119\/elon-musk-twitter-trial-october\">headed to Delaware\u2019s Court of Chancery<\/a> after Elon tried to cancel the arrangement). Musk also reportedly said he has a \u201csuper bad feeling\u201d about the economy when <a href=\"https:\/\/www.theverge.com\/2022\/6\/3\/23152932\/elon-musk-email-orders-tesla-layoffs-hiring-freeze-bad-feeling\">announcing the hiring freezes and layoffs<\/a> at the company. Those layoffs have <a href=\"https:\/\/www.theverge.com\/2022\/6\/29\/23187751\/tesla-layoffs-firings-autopilot-san-mateo-office-200-workers\">affected the autopilot team<\/a>, and Tesla has been accused of <a href=\"https:\/\/www.theverge.com\/2022\/6\/21\/23176964\/tesla-layoffs-lawsuit-gigafactory-warn-act-violate\">violating labor law<\/a> after allegedly letting over 500 Gigafactory workers go. The company also <a href=\"https:\/\/www.theverge.com\/2022\/7\/13\/23211358\/tesla-head-of-ai-andrej-karpathy\">lost its head of AI<\/a> earlier this month.<\/p>\n<p id=\"7NEeKt\">It hasn\u2019t all been bad news, though. Tesla\u2019s partnership with Uber and Hertz, where qualified rideshare drivers can rent the EVs to ferry passengers around in, <a href=\"https:\/\/www.theverge.com\/2022\/6\/28\/23185468\/uber-drivers-tesla-car-rentals-through-hertz-growth\">seems to be going well<\/a> based on a report from Uber in June. It also seems like 2022 will be the year non-Tesla EVs will <a href=\"https:\/\/www.theverge.com\/2022\/7\/7\/23198696\/tesla-supercharger-non-tesla-ev-us-white-house\">get access to the Supercharger network<\/a> in the US, based on a fact sheet released by the White House.<\/p>\n<p id=\"2LBM7c\">The company held a call discussing its Q2 results on Wednesday, which <a href=\"https:\/\/youtu.be\/kwpYe1Empwo\">you can listen to here<\/a>.<\/p>\n<p id=\"ThzP8i\"><em><strong>Update July 20th, 6:54 PM ET:<\/strong><\/em><em> Added Elon Musk\u2019s comments on the Bitcoin selloff.<\/em><\/p>\n<\/div>\n<p><code><br \/><\/br><\/code><\/p>\n<p>Source: <a href=\"https:\/\/www.theverge.com\/2022\/7\/20\/23271834\/tesla-q2-2022-earnings-elon-musk\">https:\/\/www.theverge.com\/2022\/7\/20\/23271834\/tesla-q2-2022-earnings-elon-musk<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Source: Tesla already reported vehicle shipment numbers for the second quarter, and now its full Q2 2022 financial report (pdf) reveals it\u2019s dealing with inflation and the overall economic downturn, combined with a plunge in prices of Bitcoin and other cryptocurrencies. In the letter to investors, Tesla execs reveal the company has sold 75 percent [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":10427,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"nf_dc_page":"","om_disable_all_campaigns":false,"pagelayer_contact_templates":[],"_pagelayer_content":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[49,8],"tags":[50],"class_list":["post-10426","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","category-technology","tag-business"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v23.9 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Tesla sold 75 percent of its Bitcoin - Science and Nerds<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/scienceandnerds.com\/2022\/07\/21\/tesla-sold-75-percent-of-its-bitcoin\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Tesla sold 75 percent of its Bitcoin - Science and Nerds\" \/>\n<meta property=\"og:description\" content=\"Source: Tesla already reported vehicle shipment numbers for the second quarter, and now its full Q2 2022 financial report (pdf) reveals it\u2019s dealing with inflation and the overall economic downturn, combined with a plunge in prices of Bitcoin and other cryptocurrencies. 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