Tesla Liquidates 75% of BTC Holdings in Q2 2022

Tesla published its Q2 earnings report this morning, revealing it has liquidated $936 million of BTC or 75% of its total position. The electric automotive giant made headlines in February 2021 by purchasing $1.5 billion worth of BTC, with an average cost of about $30,000 per coin. 

Tesla ended Q2 of this year with only $218 Million, significantly down from the average of $1.26 Billion in the last two quarters. The auto manufacturer had trimmed off about 10% of their total position the previous year, but many speculated the auto manufacturer was attempting to take profits following the bull run.

The recent selloff is near its breakeven level, depending on when the sale occurred, leaving room for some to speculate the cause. It isn't likely due to the manufacturer's financial trouble, with the earnings call showing solid earnings of $2.27 per share vs. $1.83 expected and higher revenue than expected. Furthermore, June was the auto manufacturer's best month of production. The electric car maker managed a new company record with 258,580 vehicles manufactured during the quarter and 254,695 delivered.

This massive BTC liquidation flies directly in the face of what Musk stated in a previous Tweet, "Tesla will not be selling any Bitcoin, and we intend to use it for transactions as soon as mining transitions to more sustainable energy."

Musk has also previously speculated that they intend to consider other cryptos for the manufacturer to process transactions, looking for coins that "use<1% of Bitcoins energy/transaction."

BTC price has corrected following the news, down over $1000 from its high a few hours ago to $23,190. Surprisingly, this is only down 0.87% from the level seen 24 hrs ago.

Author: Garrett Meifert

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