Tesla executives may be regretting the company’s investment in Bitcoin, with its losses totaling a whopping $140 million in 2022.
Tesla surprised the industry with a $1.5 billion Bitcoin purchase in early 2021. The company initially announced plans to accept the cryptocurrency as payment before reversing course over environmental concerns. In the wake of the crypto crash, it appears the electric vehicle maker’s investment has taken quite the hit.
According to an SEC filing, Tesla recorded a $204 million loss as a result of Bitcoin’s price drop. Despite this, the company was able to make $64 million in profits from Bitcoin trading, leaving it with a net loss of $140 million.
For example, in the year ended December 31, 2022, we recorded $204 million of impairment losses resulting from changes to the carrying value of our bitcoin and gains of $64 million on certain conversions of bitcoin into fiat currency by us.