Crypto crisis: Tesla stock in bear mode: This is how much money Tesla lost with the Bitcoin investment | news

• Tesla bought billions worth of bitcoins in February

• The majority of the original tokens have already been sold again – but still a large inventory

• Book losses are high but manageable

Like the securities of many other growth-oriented companies, Tesla shares have recently fallen significantly. The buzz surrounding Elon Musk’s adventurous Twitter takeover, recent unconvincing auto delivery numbers and general technical weakness from rising policy rates put an end to the Tesla bull market. But Tesla’s Bitcoin investment, which created quite a stir in 2021, also resulted in noticeable losses for the American automaker.


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How many bitcoins did Tesla buy?

At a temporary peak of the crypto hype, in early February 2021, Tesla’s CEO bought Elon Musk Bitcoins to the company account. According to the information Tesla provided to the US Securities and Exchange Commission, the company bought a total of about $1.5 billion worth of bitcoins.

The car manufacturer of the future and the currency of the future – Tesla and Bitcoin seemed made for each other, many investors talked about the perfect synthesis. But the enthusiasm has since disappeared: The strict policy of raising interest rates from the Fed, ECB & Co. ended the party for tech and crypto stocks, sobriety has now set in. This is also evident in Tesla’s Bitcoin holdings.

Tesla has sold the most bitcoins

Musk realized a portion of the Bitcoins only a few months after the purchase. In the second quarter of 2022, he then significantly reduced the holdings again: According to the company report, the company’s liquid holdings increased by USD 936 million as a result of the bitcoin sale. At the same time, the tech billionaire claimed that the sale of bitcoins should in no way be seen as a “judgment” of bitcoin. Rather, Tesla felt compelled to maximize its cash position due to the prolonged no-COVID lockdowns in China and the associated disruption in production at its gigafactory in Shanghai. In this way, sufficient liquidity could have been guaranteed. As Musk often points out, despite the crypto winter, he believes in the future of the digital currency. He also emphasized this with his frequent tweets about the meme token Dogecoin.

Despite the massive reduction in the bitcoin position by about 75 percent, Tesla remains the third largest bitcoin holder among all publicly traded companies worldwide. According to “Bitcointreasures”, the car company currently still has 9,720 bitcoins, worth a total of $200.4 million at the current price of $20,615 per bitcoin (as of November 4, 2022). According to this, only the software makers MicroStrategy (130,000 Bitcoins) and the mining company Marathon Digital Holdings (10,055 Bitcoins) have an even larger number of tokens of the original cryptocurrency.

That’s how high Tesla’s bitcoin losses are

But how big is the current loss that Tesla has incurred by investing in the original cryptocurrency? According to Cointelegraph, the financial losses that Tesla suffered by buying Bitcoin amounted to approximately $170 million at the end of October. However, the already realized profit, amounting to 64 million US dollars, must be deducted from this sum. In summary, Tesla’s bitcoin net loss at the end of the third quarter is $106 million.

However, this figure needs to be put into context: the profit for the upcoming car group was 3.29 billion US dollars in the third quarter of 2022. The recorded losses resulting from the Bitcoin investment can therefore be classified as manageable. However, Musk must have noted with some uneasiness that he was not very lucky when it came to the timing of the purchase from the current perspective.


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