Tesla Q2 Net Profit Doubles Year-on-Year... "Sold 75% of Bitcoin Holdings"

Q2 Net Profit of $2.26 Billion
Shareholder Letter States "Performance Hit by Bitcoin Sales"

[Image source=Yonhap News]

[Asia Economy Reporter Kim Hyun-jung] Tesla, the American electric vehicle company, reported its Q2 net profit this year more than doubled compared to last year, surpassing market expectations. On the same day, Tesla announced it had sold 75% of its Bitcoin holdings, sending shockwaves through the related trading markets.

Bloomberg reported on the 20th (local time) that Tesla's Q2 net profit reached $2.26 billion (approximately 2.9651 trillion KRW), more than twice the $1.14 billion recorded in the same period last year. Earnings per share stood at $2.27, significantly exceeding analysts' estimates of $1.83.

Despite production disruptions caused by the COVID-19 lockdown in China and supply chain instability leading to a halt in operations at the Shanghai factory during Q2, Tesla is evaluated to have increased profits by raising electric vehicle prices.

During the same period, revenue was $16.93 billion, down 9.7% from $18.76 billion the previous year. Global vehicle deliveries totaled 254,695 units, a 27% increase year-over-year, but a decrease compared to 310,048 units in Q1. This marks the first decline in deliveries quarter-over-quarter in two years.

Earlier in April, Tesla CEO Elon Musk predicted the company would produce over 1.5 million vehicles this year, but production through the first half reached only 564,000 units.

[Image source=Yonhap News]

On the same day, Tesla also revealed that it converted approximately 75% of its Bitcoin holdings into fiat currency during Q2. In the shareholder letter, Tesla explained, "The conversion of Bitcoin to fiat currency in Q2 added $936 million in cash to the balance sheet."

In February last year, Tesla invested $1.5 billion in Bitcoin and disclosed in April of that year that it had sold 10% of its holdings. On this day, Tesla stated that its cryptocurrency holdings had decreased to $218 million, and that losses from Bitcoin investments had negatively impacted Q2 profitability.

Tesla's Bitcoin sales have influenced the market. Bitcoin, which had risen as much as 4.2% during the day, turned to a 1.6% decline following Tesla's announcement. CEO Musk has shown a favorable attitude toward cryptocurrencies, driving legalization and activation of investments. In April, during a large party at the Austin factory, a drone show featured images of Dogecoin.

This content was produced with the assistance of AI translation services.