In February 2021, Elon Musk who started Tesla and the company also known as who owns the most bitcoin, bought $1.5 billion worth of bitcoin, which is about 4,200 BTC. This made a lot of noise in the crypto space. Elon Musk, the company’s CEO, tweeted “#bitcoin.” This caused the price of the digital asset to go up by 17%. Tesla also said it is to accept bitcoin as a way to pay for things.
But the excitement didn’t last long, because a few months later, Tesla stopped letting people buy cars with BTC. It said that bitcoin payments would start again when 50% of Bitcoin mining was done with green energy. During Elon crypto bear market of 2022, it sold 75% of the bitcoins it owned. This added $936 million to its balance sheet. This move went against Musk’s tweet from 2021, which said, “Tesla will not sell Bitcoin.”
How does Elon Musk go back on his word?
Elon Musk went on Twitter last year to explain Tesla bitcoin view.
“Tesla is not going to sell any Bitcoins.” This seems pretty clear.
Then, a year after that Tweet, most of Tesla’s Bitcoin was sold.
You may be able to see a pattern here.
Elon Musk’s claims about Tesla don’t always come true, whether he’s talking about driverless tech or buying social media companies.
So far, it doesn’t look like that has hurt his business career.
However, this serves as yet another cautionary example that the market-moving words he speaks are not permanently based in reality.
When did Elon Musk’s Tesla bitcoin share sell?
The electric car company Tesla put $1.5 billion into Bitcoin at the beginning of last year, betting on the digital currency’s “long-term potential.”
Elon Musk Tesla did not sell any of its holdings or buying any more Elon Musk bitcoin during the third quarter, the company said in its most recent earnings report on Wednesday.
The value of its digital assets stayed at $218 million, the same as at the end of the second quarter, when Tesla surprised some investors by selling $936 million worth of bitcoin, or about 75% of its total holdings, to raise cash.
Tesla did not have to write down the value of its bitcoin holdings because the price of bitcoin was almost the same at the end of the second and third quarters, at just under $20,000.
At the end of the second quarter, Tesla coin only had $218 million in bitcoin (BTC), which is less than the $1.26 billion it had in the three quarters before. The company said it made a gain of $64 million when it sold its holdings in the second quarter. However, it had to pay $170 million in impairment charges on the rest of its bitcoin, so its profit and loss statement showed a net cost of $106 million.
When Tesla said in February 2021 that it had bought $1.5 billion worth of bitcoin, the coin premarket went up. Later in that first quarter, the company sold 10% of its bitcoin, which added $272 million to its earnings for that quarter. Before the second quarter of this year, it had not bought or sold any more bitcoin.
If Tesla was so confident in their product, why did they sell its shares?
As part of its quarterly updates, Tesla said that it had sold the holdings. It said that Bitcoin was one of the things that kept the company from making money.
But the company made more money than expected in the three months leading up to the end of June. This was because raising the prices of its best-selling cars helped make up for problems, such as lockdowns in China.
Elon Musk Tesla said that when Covid-19 restrictions were lifted, production at its factory in China hit a monthly high.