During an investor conference, Tesla revealed that it had sold 75% of all its bitcoins for $936 million. The sale was motivated by rising inflation and the global economic situation, coupled with the recent sharp drop in the price of bitcoin. Elon Musk also took the opportunity to state that:We do not sell our Dogecoins”.

Tesla invested $1.5 billion in bitcoin last year and also accepted bitcoin as payment, but reversed that decision after about 49 days. Tesla CEO commented that despite selling almost all of his bitcoin holdings, he “expects bitcoin success”. During the investor conference, the company announced that it received profit $2.26 billion. in the second quarter, the value representing 31% drop in revenuecompared to the value of $3.3 billion received in the first quarter of 2022.

The remaining amount that Tesla has in cryptocurrencies is about $218 million. For investors, Musk talks about selling “should not be interpreted as a judgment on Bitcoin”. According to him, the main problem is related to the liquidity of the company, due to the recent lockdowns that have occurred in China due to COVID-19. With rising inflation and rising prices for raw materials used in the manufacture of cars, the situation with cryptocurrencies has faded into the background compared to the needs of Tesla.

Regardless, Musk says he will continue to invest in the cryptocurrency market. The crypto-currency that has become a meme, Dogecoin, remains one of the bets of a billionaire who, when he can, comments on the digital asset and causes fluctuations in the value of the cryptocurrency.

During the conference, Tesla said that even with a 31% decline from the first quarter of 2022, the company is still in a better position than it was in 2021, when it generated $1.1 billion in revenue during that period. The company also said it produced about 15% fewer vehicles as a result of the lockdown, which occurred in China and affected the operation of the plant in Shanghai. The electric vehicle and solar panel maker appears to be taking steps to avoid taking on financial risks during a challenging global economic environment.

Source: Edge

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