Elon Musk's big move in cryptocurrency has paid off big time. According to the companny's quarterly earnings report, his company Tesla has profited about $101 million in the Bitcoin department. The company is also fighting for dominance in the EV market.
Musk, a centibillionaire and one of the richest people in the world, is the brain behind Tesla, Inc. The company had earned big profits as one of the largest EV manufacturers in America. Elon's influence extended to other industries as well, including his companies SpaceX, The Boring Company and OpenAI. More recently, he jumped on the Bitcoin bandwagon and never looked back.
Elon Musk Bitcoin Investment Brings $101 Million Profit
In a report by Cnbc, Tesla Chief Financial Officer Zachary Kirkhorn said: "Elon and I were looking for a place to store cash. Bitcoin has proved to be a good decision, a good place to put some of our cash that's not being used for daily operations...and be able to get some return on that."
Musk had been a long supporter of the cryptocurrency movement. The latest earnings report of the company was concluded with their intent to go long-term with cryptocurrency investments. To further support this, Tesla is currently accepting Bitcoin payments from their customers.
As Cnbc reported, after investing $1.5 billion to purchase liquidity in Bitcoin last February, $101 million was contributed on "positive impact, net of impairments, in 'Restructuring and Other.'" It is interpreted that the company has converted $101 million to Bitcoin as its value rose during Q1.
Tesla Stocks Decline
The global chip shortage continues to affect many technological industries, including Tesla's automotive manufacturing. Bloomberg reported that the EV maker fell 3.1 percent in stock shares. Most of their production was delayed, and these problems would only continue through Q1 until Q3.
EV manufacturers also continue to rise against Tesla. With the Toyota Tundra and Audi Tron series coming out, Tesla is in aggressive competition. Tesla, however, plans to continue pushing for dominance, especially with the EV demand higher now more than ever.
With the rapidly expanding EV market, Tesla predicts more consumers will get more confidence in EVs and might start making their switch anytime soon. The company also reported that it has gotten better and more efficient at building cars. The industry is said to have an automotive gross margin of 26.5 percent.
The company is faced with many challenges and concerns on the shift and merging of interests in both the cryptocurrency and EV industry. The system currently in place gives the company a boost in profits, but many critics are skeptical about how long these positive profits will last.
It is not clear how the cryptocurrency industry could support Tesla's journey to "accelerate the world's transition to sustainable energy." However, it remains certain that the cryptoccurency industry and Tesla EV investments are here to stay for the long run.
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