In its latest quarterly report, Tesla disclosed that it did not sell any Bitcoin during the second quarter of the year. This marks the eighth consecutive quarter without Bitcoin transactions, maintaining its holdings at approximately 9,720 Bitcoins, valued at $640 million at current prices. These assets were initially acquired at a total cost of around $337 million. Tesla’s last significant Bitcoin transaction occurred in the second quarter of 2022 when the company sold over 30,000 Bitcoins for $936 million, approximately 75% of its holdings at that time. Tesla’s initial investment in Bitcoin amounted to $1.5 billion in early 2021.
Tesla Surpasses Revenue Expectations Despite Weaker Earnings
Tesla’s second-quarter financial report revealed strong performance, surpassing revenue expectations with a total revenue of $25.5 billion, compared to the anticipated $24.63 billion. The company’s net profit, according to Generally Accepted Accounting Principles (GAAP), was $1.5 billion, and it reported a free cash flow of $1.34 billion. However, earnings for the quarter were weaker than expected due to a drop in automotive sales for the second consecutive period, causing the stock to slide more than 8% in extended trading. Tesla recognized record regulatory credit revenues in Q2, indicating that other automakers are still struggling to meet emissions requirements. During a conference call, CEO Elon Musk announced a delay in the launch of Tesla’s autonomous taxi service, Robotaxi, from August 8 to October 10, expressing confidence in the revised timeline despite acknowledging his historically optimistic predictions.
Musk Pledges Financial Support to Trump Campaign
Elon Musk has reportedly pledged about $45 million a month to a newly formed political action committee backing former President Donald Trump, although he has yet to donate to the group as of the end of June, according to its latest financial filing. Musk endorsed Trump following an assassination attempt at a political rally on July 13. This endorsement comes as Trump gains popularity within the crypto community, having recently shifted his stance on cryptocurrencies. Despite previously criticizing Bitcoin as a “scam,” Trump has vowed to end the Biden administration’s “war on crypto” if re-elected. Trump’s evolving position on cryptocurrencies has bolstered his support among crypto enthusiasts, as indicated by surveys showing significant voter consideration of candidates’ crypto policies. Prediction traders currently favor Trump with a 69% chance of victory in the 2024 Presidential Election.
Implications for the Crypto and Automotive Industries
Tesla’s steadfastness in holding onto its Bitcoin assets, combined with its robust revenue performance, reflects a strategic approach to balancing its investments and core business operations. The company’s cautious stance on Bitcoin transactions contrasts with the volatile nature of the cryptocurrency market. Meanwhile, Musk’s political involvement and support for Trump could influence regulatory perspectives on cryptocurrencies, potentially impacting the broader financial and tech industries. As both Harris and Trump show interest in the crypto space, the intersection of politics and digital assets continues to gain significance, shaping future economic policies and market dynamics.
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