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Elon Musk’s Tesla Still Ready to Buy More Bitcoin After Selling In Q2 To Raise Cash

Tesla CEO Elon Musk said the EV company could rebound to its bitcoin position in the future, but wants to raise its cash position.

  • CEO Elon Musk said electric vehicle maker Tesla (TSLA) sold most of its bitcoin holdings in the second quarter to increase its cash position due to uncertainty surrounding the Covid lockdown in China.
  • But Musk said Tesla is open to increasing its bitcoin holdings again in the future, and noted that the second-quarter sale “should not be taken as some verdict on Bitcoin,” emphasizing that “we were concerned about overall liquidity for the company given Covid shutdowns in China.”
  • Tesla has not sold any of its Dogecoin (DOGE) shares, Musk also said during the conference call.
  • Tesla sold $936 million worth of bitcoin (BTC), or 75% of its holdings during the quarter. It sold its bitcoins for an average of about $29,000 per bitcoin, avoiding a significant loss charge by selling earlier in the quarter, since bitcoin ended the second quarter at around $18,700 .
  • The bitcoin price initially fell about 1.7% to $23,300 following the release of Tesla’s Q2 earnings report, which included news of its sale. But it recovered those losses following Musk’s comments on the earnings call.