According to reports, Tesla incurred a loss of $140 million on its Bitcoin investments in 2022. ( £113.5 million)
The electric vehicle company informed the US regulator that it suffered a total loss of $204 million on Bitcoin, but made a recovery of $64 million through trading.
In early 2021, Tesla invested $1.5 billion in Bitcoin, with the CEO, Elon Musk, announcing that the cryptocurrency would be accepted as a form of payment.
A few weeks later, the company altered its stance and has since liquidated a majority of its Bitcoin holdings.
Currently, Tesla holds approximately $184 million worth of Bitcoin.
Elon Musk, the CEO, has been a prominent supporter of cryptocurrency, and his statements on social media frequently result in significant trading activity.
Tesla’s purchase of Bitcoin in February 2021 led to a surge in the cryptocurrency’s price by over 25%, reaching a record high of $48,000 at the time.
In March 2021, the price of Bitcoin increased again following Elon Musk’s tweet that Tesla would accept the cryptocurrency as payment for car purchases, allowing US customers to place orders with a $100 deposit in Bitcoin.
However, two months later, Bitcoin’s value decreased by over 10% when the company reversed its decision, due to environmental concerns.
The UK Treasury states that the global energy consumption of Bitcoin is estimated to be equivalent to 39% of the UK’s, and some calculations even place it higher.
The price of Bitcoin reached almost $70,000 in November 2022, but plummeted by over 50% when Tesla chose to sell a significant portion of its holdings.
