According to the British major bank Barclays, Tesla’s Bitcoin investment could weigh heavily on the American electric car manufacturer’s upcoming earnings. How bad will it get?
Barclays analyst Brian Johnson expects Tesla to report a write-down of about $ 460 million on its Bitcoin investment. Tesla will announce its results for the second quarter of 2022 after the market closes on Wednesday.
“With bitcoin ending the last quarter at around $ 19,000 – well below Tesla’s likely purchase price of $ 32,000- $ 33,000 – we expect Tesla to print a write-down of around $ 460 million, or $ 0.40, in Q2 US dollars per share. be announced. “, the American news channel CNBC quoted the Barclays analyst as saying.
Tesla is more invested in Bitcoin than almost any other listed company: The electric car maker recently had around 42,902 Bitcoins on its balance sheet. Only the US software company MicroStrategy has a higher Bitcoin exposure of 130,179.
There has been a sharp collapse in the cryptocurrency market recently: The market value of the more than 20,000 cryptocurrencies worldwide has fallen from about three trillion US dollars to less than 900 billion US dollars since the highest level in November 2021. In the same period, Bitcoin fell from about $ 69,000 to about $ 17,700 at times.
Still, Johnson expects Tesla’s earnings to exceed expectations. Barclays also raised Tesla’s price target to $ 380 from $ 370, but kept the underweight rating. However, the slightly higher price target still corresponds to a downside potential of more than 47 percent compared to yesterday’s closing price on Nasdaq.
Author: Ferdinand Hammer, Wallstreet: Online Central Editing.
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