Tesla Lost $170 Million On Bitcoin In The First Nine Months Of 2022

Tesla stated that it has spent a total of $1.5 billion into Bitcoin since early 2021 in its most recent Q3 earnings report, which was submitted to the US Securities and Exchange Commission.

The firm presently has $170 million in unrealized loss from the fluctuation in the fair value of its investment, which represents a portion of this sum. By the conclusion of Q3, there had been a net loss of $106 million due to the gain of $64 million from realized profits on Bitcoin at various intervals during the previous two years.

Tesla’s losses had no significant impact on its primary business

Profits for the EV producer increased 169% from $3.3 billion in the first nine months of 2021 to $16.3 billion year over year. Tesla claims that the amount of Bitcoin company has on hand is only about $218 million.

Digital assets are categorized as intangible, long-lived assets in accounting. Since Tesla does not make upward revisions for price increases until a sale, any decline in their fair values will necessitate the recognition of impairment costs. Losses can be offset against profits to lower tax obligations in this advantageous tax regime, while capital gains are not taxed until the time of sale.

Elon Musk, the CEO of Tesla, is well-known in the cryptocurrency community for his support of digital assets, fondness for memecoins like Dogecoin, and his $44 billion ambition to acquire Twitter, the largest social media platform. The wealthy tech star has promised to “remove the spam and scam bots from the site” throughout the ongoing acquisition since, in his words, “They significantly degrade the product.” We’d have 100 billion Dogecoins if I had one for each cryptocurrency fraud I encountered.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join us to keep track of news: https://linktr.ee/coincu

Website: coincu.com

Annie

CoinCu News