Tesla, the leading e-car manufacturer, keeps holding $184 million worth of digital assets on its balance sheet, according to its Q1 earnings results.
Even though the price of Bitcoin is up more than 72% on a year-to-date basis, the value of the company’s holdings remains unchanged due to the fact that unrealized gains do not have to be recorded.
Tesla initially acquired a whopping $1.5 billion worth of Bitcoin back in February 2021, pushing the price of the flagship cryptocurrency to new highs. the
In April 2021, Tesla reduced its position by 10% in order to secure $272 million worth of proceeds.
In July, the leading e-car maker sold the vast majority of its Bitcoin holdings.
Tesla shares surge
The leading e-car manufacturer has recorded a massive 55% drop in profits in the first quarter of the year. Meanwhile, its revenue dropped as much as 9%.
The Tesla stock is down more than 40% on a year-to-date basis as the stock continues to face tough competition in China. Elon Musk’s company is struggling to compete with China’s domestic manufacturers of the likes of BYD.
Despite grim financial results, Musk still managed to excite investors by announcing that it plans to launch a cheaper Tesla in the second half of 2025. The Tesla boss also hinted that the company’s robotaxi could be called “Cybercab.”
While the details were extremely scant, Musk’s vague promises still managed to push the stock significantly higher. TSLA is currently up as much as 13% in pre-market trading.
Earlier this month, the company was also forced to announce massive layoffs in order to reduce costs.
