Experts say Tesla May Have Lost up to $100M Following Bitcoin’s Q2 Bad Performance

Experts say Tesla May Have Lost up to $100M Following Bitcoin’s Q2 Bad Performance

Experts are of the opinion that if Tesla is asked to take stocks, it will say that it has lost between $25 million and $100 million from the company.

·

After a very bad second quarter for Bitcoin, experts say that Tesla may have lost up to $100 million.

As BTC’s price keeps falling to what it was around January, Kate Rooney from CNBC commented yesterday that Tesla may be challenged with an “impairment charge” if it has to report to the U.S. SEC.

The reason why Tesla is facing this trouble now is that it bought as much as $1.5 billion worth of BTC few months before the sudden rise and fall of the coin.

Rooney said that Tesla’s BTC is an asset for the company but not a physical one. If the value of BTC falls under a fixed price, the company has to reflect that loss in their financial report.

“Tesla says if Bitcoin’s price falls below the carry cost, or where Tesla bought it, at any time after they bought it, an impairment cost is recognized.”


Rooney added that some sources (without names) have approximated the losses suffered by Tesla now to be around $25M to $100M.

Nevertheless, to be sure of what Tesla has gained or lost from the BTC accumulation of February, the coins would have to be sold.

Elon Musk, the owner of Tesla, has been an important figure in the crypto space lately. There is no doubt that the accumulation of BTC by his company in February was part of the reason why Bitcoin rallied so high.

Despite his influence in the crypto community, he is still not liked by many because he decided to stop accepting BTC for the cars sold at Tesla. Apart from that, he seemed to value Dogecoin over Bitcoin lately because he claimed that Bitcoin mining added more trouble to the environment.


Disclaimer

The article posted herein is published by members of this site. Any information you find on this article is base on the opinion and view of the publisher. You are at liberty to accept or reject this article and act base on your own perspective of the platform. You are encouraged to share your own opinion or views about the platform with us via the comments box below so as to further improve this article.

Team Reviewparking is no third party and we can't handle any queries whatsoever.

Get involved!

0 Comments

No comments yet