Tesla’s recent financial results reveal a major missed opportunity. While the company’s digital assets now stand at $1.24 billion, a significant increase from $722 million a year ago, this growth masks a much larger loss. Tesla had sold 75 percent of its bitcoin holdings in mid 2022 when the cryptocurrency was trading much lower than its current value. With bitcoin now near record highs and up 80 percent in the past year, the early sale has cost Tesla billions in potential gains.
Back in early 2021, Tesla made headlines by investing $1.5 billion in bitcoin, calling it a strategic move to diversify and maximize returns on its cash. CEO Elon Musk had also expressed strong support for bitcoin on social media, boosting its value. At one point, just adding “#bitcoin” to his bio caused the cryptocurrency to surge by 20 percent in a single day.
However, in mid 2022, the global financial environment shifted. The post pandemic boom faded, inflation spiked, and interest rates rose, causing investors to pull away from high risk assets like crypto. It was during this period that Tesla sold most of its bitcoin holdings.
Though Musk has emphasized that Tesla’s future is focused on robotaxis and humanoid robots, the company’s current financials show it may have benefitted from holding onto more of its bitcoin. In the second quarter, bitcoin gains added $284 million to Tesla’s profitability. This was a notable portion of its total net income of $1.17 billion. However, the gains could have been significantly higher if the company had retained its original investment.
Tesla is currently facing challenges in its core business. It reported a second consecutive drop in auto revenue and missed Wall Street expectations. Its stock dropped 8 percent following the results and is now down around 25 percent for the year, making it the worst performing among large tech companies.
Looking ahead, Tesla is betting big on its robotaxi and Optimus robot ventures. But with growing competition, potential impacts from tariffs, and the end of federal EV tax credits, the road ahead remains uncertain.
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