How Bitcoin Losses Could Hit Tesla's Earnings
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In a filing to the Securities and Exchange Commission in February, Tesla (NASDAQ: TSLA) revealed it made a $1.5 billion investment in the high-flying cryptocurrency Bitcoin (CRYPTO: BTC). It sparked a widespread debate about whether other companies should have exposure to crypto, as a hedge against rising inflation and a weaker U.S. dollar.
There were concerns, though, about Bitcoin's volatility and the possible effect that might have on Tesla's earnings -- after all, it's a car manufacturer that has struggled to generate meaningful profits from its core business. It didn't take long for this to become reality -- in the very same quarter that Tesla purchased Bitcoin, it sold some for a profit, positively adding to its net income for the period. With cryptocurrencies falling hard and fast in recent weeks, Tesla could be facing a real Bitcoin problem in its future earnings reports.
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Source Fool.com
