The fall of Bitcoin also cost Tesla dearly. In 2022, the automaker lost at least $204 million after the cryptocurrency crash. The amount that the latter was unable to recover by selling almost all of its assets.
Remember: In 2021, Bitcoin is on the rise. Cryptocurrency is on the rise, everyone wants their share of the pie and Elon Musk, via Tesla, is no exception. As the craze is at its peak within the community, the maker announces the purchase of $1.5 billion worth of Bitcoin. The reaction was immediate: the currency sees its value rise very quickly.
A year later, the scene has darkened a bit. The year 2022 was disastrous for Bitcoin and in general for all cryptocurrencies and their followers. Tesla has also felt the tide turn as, shortly after announcing that he was accepting Bitcoin payments, the company fell behind. But that wasn’t enough to avoid the wall.
TESLA HAS BEEN HARMED BY THE FALL OF BITCOIN
In a document provided by Tesla, we learn that Elon Musk’s company lost at least $204 million, or about €187 million, due to the 2022 cryptocurrency crash. Over the summer, Tesla sold most of its digital assets, resulting in a profit of $64 million. So the net loss would be $140 million.
While this number is quite large, it should be noted that Tesla has clearly succeeded in limiting the damage. In June 2022, the company reported $600 million in bitcoin-related losses. As of today, Tesla still owns $184 million. Like many experts, the manufacturer may still believe in the cryptocurrency’s resurgence in the coming years. An opportunity to remember that at the time of writing Bitcoin is worth $21,120, a far cry from its all-time high of $68,789.