Why Did Tesla Sell Bitcoin and What Could Be Next?

You probably heard that Tesla  (TSLA) – Get Tesla Inc. Report sold 75% of its Bitcoin holdings, which added around $936 million to its balance sheet.

Tesla sold bitcoin at an average of $28,000, which is roughly a 9% discount from their average entry price of $31,000. The sale pushed Tesla to be cash flow positive instead of negative for this quarter, and according to Elon Musk, the company also decided it was worth selling most of its holdings at a loss due to China’s covid lockdowns.

Musk said on the earnings call that Tesla wasn’t sure when the lockdowns would lift, and therefore wanted to get ahead of them. Musk also clarified that the company has not sold its Dogecoin, and that it’s willing to increase the company’s bitcoin holdings in the future. But, he did also add that crypto has yet to contribute to an environmentally sustainable future.

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