Tesla Reported No Changes in Digital Assets in Q2 But Recorded A Bitcoin-Related Impairment of $23 Million
Tesla has posted a bigger second-quarter profit than expected, and unlike the Q1, this time, there were no changes in digital assets.
As the CEO of the electric car maker, Elon Musk, said last week at the B-Word conference, he “might pump,” but he does “not dump.” At the time, the billionaire also revealed that he is personally invested in BTC, ETH, and DOGE and that his other company SpaceX is also holding bItcoin for the long term.
Musk had further said that Tesla would most likely restart accepting Bitcoin as payment once they have done a little bit more due diligence to confirm that the percentage of renewable energy usage in Bitcoin mining is at or above 50%.
Meanwhile, the company's total revenue grew 98% YoY in 02, primarily driven by substantial growth in vehicle deliveries.
At the same time, Model S and Model X deliveries were reduced in the second quarter, leading to a decline of 2% YoY in-vehicle ASP, due to the product updates and China-made vehicles becoming a larger percentage of their mix.
Operating income also improved to $1.3 billion, mainly due to volume growth and cost reduction. Positive impacts, however, were partially offset by growth in operating expenses that includes Bitcoin-related impairment of $23 million.
This was for the first time since late 2019 that Tesla’s profits didn't rely on sales of environmental credits to other automakers.
Musk, however, said that a global chip shortage that led to temporary shutdowns of their factory remains serious. As such, Tesla has delayed the launch of its Semi truck program to 2022 due to the limited availability of battery cells and to focus on starting factories.
In other news, on Monday, the speculation around Amazon planning to accept Bitcoin was put to rest as the e-commerce giant denied the media report.
“Notwithstanding our interest in the space, the speculation that has ensued around our specific plans for cryptocurrencies is not true,” said a spokesperson from Amazon. “We remain focused on exploring what this could look like for customers shopping on Amazon.”
The tech giant has also posted a job opening for a digital currency and blockchain product lead.