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.
Rafaela Erdman is a full-time journalist at AMFCrypto. She is a recent journalism graduate, currently investing his time in the crypto-space. She has a keen interest in DeFi, NFTs, the ever-expanding possibilities of blockchain technology, as well as the political impact they would have.