Bitcoin News- The net loss comes to $106 million at the conclusion of the third quarter.
- Tesla’s losses did not have a significant impact on the company’s fundamental operations.
Tesla, the electric vehicle (EV) maker, has reportedly invested $1.5 billion into Bitcoin since the beginning of 2021, as reported in the company’s latest quarterly financial report filed with the United States Securities and Exchange Commission.
The company has an unrealized loss of $170 million as a result of the decline in the fair value of its investments as of the present time. Still, the $64 million in profits made from Bitcoin investments at different times over the last two years helped to reduce the net loss to $106 million at the conclusion of the third quarter.
Not Much Impact
According to the document, Tesla’s losses did not have a significant impact on the company’s fundamental operations. The electric vehicle maker had a 169% increase in earnings from $3.3 billion during the first nine months of 2021. Tesla, though, claims to have just around $218 million worth of Bitcoin in its coffers at now.
So, if their fair values go down, Tesla will have to take an impairment charge, but it won’t adjust for price rises until they’re sold. Gains on investments are not taxed until they are sold, and losses may be offset against earnings to lower tax bills.
Elon Musk, CEO of Tesla, is well-known in the cryptocurrency community for his advocacy of digital assets, fondness for meme coins like Dogecoin, and $44 billion goal of acquiring social media behemoth Twitter. The billionaire tech star has promised to “eliminate the spam and scam bots from the platform,” claiming that they make the product considerably worse, as the purchase continues.
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Source: https://thenewscrypto.com/teslas-bitcoin-losses-reach-170-million-amid-bear-market/