Tesla loses $140 Million 🔻

GM Guys and Gals,

Losses and Losses are just roaming around everywhere. It’s the talk of the town! Recently Tesla went on to report an exploding $140 Million in Bit-o-Coin 😉 [Here’s everything about the loss 👇🏻]

Tesla lost over $140 million betting on Bitcoin last year, according to a Monday filing with the U.S. Securities and Exchange Commission. The electric car manufacturer took a $204 million impairment charge while gaining $64 million through converting Bitcoin in 2022.

“In the year ended December 31, 2022, we recorded $204 million of impairment losses resulting from changes to the carrying value of our Bitcoin and gains of $64 million on certain conversions of bitcoin into fiat currency by us,” Tesla said in the filing.

An impairment charge describes a reduction or loss in the value of an asset. It can occur because of a change in economic circumstances, like the crypto winter that gripped the market after the collapse of Terra Luna in May 2022.

The annual disclosure to the SEC comes less than a week after Tesla’s quarterly earnings report, which included no Bitcoin transactions but nonetheless saw the value of its holdings decline, generating a $43 million loss for the last four months of 2022.

In February 2021, Tesla invested a staggering $1.5 billion in Bitcoin, making it one of the largest corporate holders of the cryptocurrency—second only to MicroStrategy. At the time, Bitcoin traded at $46,364 per coin.

But the good times did not last as Bitcoin, and the rest of the cryptocurrency market went into freefall in 2022. As of January 31, 2023, Bitcoin is trading at around $23,051.

By October 2022, Tesla reported to investors that the company still held over $218 million in Bitcoin after selling 75% of its holdings in July—around $936 million at the time.

That’s it for the day, Web3Shala 👋

To the Moon 🚀