On Monday night, the EV maker posted a blowout quarter for earnings. Tesla (NASDAQ: TSLA) reported revenue of $10.39 billion, up 74% compared to this time last year, and set a new record for vehicle deliveries, reporting 184,800 sales of its Model 3 and Model Y cars. The earnings release proved that the California-based company is putting miles between itself and its competitors in the EV space. However, Wall Street was busy discussing a smaller component of Tesla’s earnings; the company’s Bitcoin profits.
Despite the impressive earnings report, Tesla shares are down more than 5% since Monday. The stock, which was one of the market’s best performers in 2020, has dropped almost 4% year-to-date.
How much has Tesla made from Bitcoin?
Tesla stated that it earned more than $100 million from the sale of Bitcoins in Q1, proving the liquidity of the cryptocurrency, and helping boost the company’s net profits to a record high in the quarter. Back in February, Tesla made the shocking announcement that it had bought $1.5 billion worth of the coin in its annual report and recently, according to a securities filing, Tesla is now holding roughly $2.5 billion worth of the crypto asset. In Monday’s earnings report, the company stated:
“Quarter-end cash and cash equivalents decreased to $17.1B in Q1, driven mainly by a net cash outflow of $1.2B in cryptocurrency (Bitcoin) purchases, net debt and finance lease repayments of $1.2B, partially offset by free cash flow of $293M.”
CEO Elon Musk noted that its operating income of $594 million was boosted, amongst other factors, by selling Bitcoin during the quarter. The report explained that the sale of the cryptocurrency totaled $272 million and said that the sum of its digital assets at quarter-end stood at $1.3 billion.
All was not well in the world of crypto though as many Bitcoin believers took to Twitter to question Musk’s actions. One crypto fan questioned if the eccentric CEO had purposely pumped Bitcoin by talking about it on social media, just to sell it to make a fortune. Musk’s response was simple, that he had not sold any of his personal Bitcoin, but Tesla had sold 10% of its holdings. The tech tycoon is still being watched closely by regulators for his actions involving cryptocurrency so Tesla shareholders might want to watch this space.
We recently had our say on how we expected Tesla to do in its latest earnings release, check it out here.
Read more about Tesla and Bitcoin:
A MyWallSt subscription gives you access to over 100 market-beating stock picks and the research to back them up. Our analyst team post daily insights, subscriber-only podcasts and the headlines that move the market. Get your free access now!
MyWallSt operates a full disclosure policy. MyWallSt staff currently holds long positions in companies mentioned above. Read our full disclosure policy here.
Content Writer at MyWallSt
Nicole's favorite stock is Etsy because she loves its original and handmade items. She believes people are going to stop buying mass-produced items and start purchasing ‘one of a kind’ fashions and furnishings. In a world of sameness, Etsy has the advantage.