Tesla Records $23M Impairment Loss on BTC, Despite Revenue and Profit both Exceeded Expectations in Q2 Financial Report
Annie Li Jul 27, 2021 06:50
American electric vehicle manufacturer Tesla released its second-quarter financial report on Monday. The company recorded a $23 million impairment loss on Bitcoin subject to the recent volatility.
American electric vehicle manufacturer Tesla released its second-quarter financial report on Monday. The financial report did not show any purchase or sale of Bitcoin in this quarter.
According to financial reports, the amount of Bitcoin that Tesla currently holds estimated an impairment loss of up to $23 million.
Since Bitcoin's plunge has fallen by nearly half the price from the previous historic high of $64,443 on April 14, 2021, At the time of writing, the price of Bitcoin has dropped from the price of $40,547 to $36,779 and has decreased by 3.79% within 24 hours according to Coinmarketcap.
Despite losses in digital asset investment, Tesla’s corporate business income and financial reports are excellent, and the second-quarter revenue and profits have exceeded market expectations. Among them, the earning per shares indicator belonging to shareholders' equity also exceeded Wall Street analysts' expectations.
The tesla Q2 financial statement report shows that the revenue in Q2 this year recorded $11.96 billion, which translates into double the amount earned of $6.036 billion in Q2 of 2020.
Tesla's net income earned in Q2 of 2020 is a substantial increase of up to $1.142 billion, compared to the $104 million in net revenue generated in Q2 of 2020, which translates into tenfold the amount earned in Q2 of 2020. This is also the first time that net profit has exceeded $1 billion.
Thanks to the growing demand for clean energy electric vehicles, Tesla predicts that car deliveries will increase by more than 50% this year and stated that:
"In the second quarter of 2021, we broke new and notable records. We produced and delivered over 200,000 vehicles, achieved an operating margin of 11.0%, and exceeded $1B of GAAP net income for the first time in our history."
Adjusted earnings per share (EPS) belonging to common shareholders were $1.02, which exceeded expectations by 46%, rising 230% year over year (YOY).
In the Q1 quarter of 2021, the company sold $272 million worth of digital assets and obtained a net income of $101 million, which represented approximately 10% of its shares at the time. It is currently estimated that Tesla holds about 1.3 billion US dollars of bitcoin in total.
As reported by Blockchain.News on July 22, the CEO of Tesla Elon Musk, added that Tesla could soon start accepting Bitcoin payments once the company has conducted its due diligence in assessing the actual impact of the cryptocurrency on climate change. Meanwhile, Musk emphasized that neither Tesla nor SpaceX has any plans to sell any Bitcoin.
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