WHY TESLA GAIN TRACTION ON BITCOIN SALES AND RECORDED A LOSS ON CAR SALES
The super car maker have recorded loss on its products by enjoy some traction on it Bitcoin business
Tesla have gained £315m in its first quarter of it Bitcoin adoption and subsequent use. Tesla posts first quarter profits of $438m (£315m) bolstered by Bitcoin sales and environmental credits I.e it made a loss on selling actual cars and only made money selling credits and Bitcoin but not quite elaborate. The bitcoin is relatively small compared to their environmental credit sales (over 500 million of pure profit), which is regulatory greenwashing pollutant car manufacturing.
It's not a surprised it made a loss on car sales though, relatively small sales numbers and building two (three?) giant factories around the world. That’s going to eat a lot of money, having the Bitcoin kickback to cushion the loss effect is a really cool alternative for the company. they made a smaller profit but did make a profit once his one off bonus is discounted. Don't forget they're also building factories in Berlin, Texas & doubling the Chinese factory, all at the same time as increasing car sales. Not many companies doing that right now.
They bought $1.5 billion Bitcoin (only sold 10% of it). They actually have a margin of 23% if their cars. Profits arnt as high this quarter overall as they had to pay Elon stock based compensation of $300 million and are still building 2 GigaFactories which is expensive. I'm still laughing that Tesla has a Master of Coin and he spent a few minutes yesterday talking to Wall Street analysts about the $1+ billion of bitcoin they have on their balance sheet. Notching $438 million in net income this quarter, the sale of more than $100 million in Bitcoin, according to its quarterly earnings report is a buffer
