Tesla reports $101 million loss from Bitcoin Investments in 2021

In a recent 10-K filing, used to report the financial performance of a public company, Tesla disclosed a $101 million loss in Bitcoin (BTC) investments. The electric vehicle company invested $1.5 billion in the first quarter of 2021, the report said.

Tesla noted in a filing with the U.S. Securities and Exchange Commission (SEC) that the price of Bitcoin fell below the company’s purchase price, as the entire cryptocurrency market plunged. Furthermore, Elon Musk‘s company had $128 million in profits in Bitcoin for selling certain goods.

“We believe in the long-term potential of digital assets as both an investment and a liquid alternative to cash. As with any investment and consistent with how we manage our cash and fiat-based cash equivalents, we may increase or decrease our digital asset holdings at any time based on business needs and in our view of the market and environmental conditions”.

Not the first decline loss

In July, Tesla reported a $23 million drop in the second quarter of 2021. According to CNBC, the $1.5 billion initial investment last February was “more than the entire research budget.” quarterly research and development” and soon rose to $2.48 billion with the rise of Bitcoin price.

Furthermore, the company reported $2 billion in operating income that was accompanied by a $51 million impairment loss in the third quarter of last year. This is Tesla’s “best ever” result to date.

Tesla Reports USD 101M of Impairment Loss from Bitcoin Investments in 2021.
Tesla Reports USD 101M of Impairment Loss from Bitcoin Investments in 2021

As for Tesla, they added that they expect operating expenses to grow in 2022 as they are expanding operations globally.

As long as we see expanding sales, and excluding the potential impact of macroeconomic conditions including increased labor costs and impairment charges on certain assets […], we generally expect operating expenses relative to revenues to decrease as we continue to increase operational efficiency and process automation,” the filing stated.”