Tesla Sold Its Bitcoin, Should You?
Last week, Tesla (NASDAQ: TSLA) made headlines with its quarterly earnings call when CEO Elon Musk disclosed that the company sold 75% of its Bitcoin (CRYPTO: BTC) that it originally bought in January 2021.
At the time, Musk took to Twitter to announce that the company purchased $1.5 billion of Bitcoin as an alternative to holding cash. But now that same Bitcoin was sold as Tesla faced an uncertain production environment in its Chinese markets.
Due to prolonged COVID-19 lockdowns at its Shanghai factory, Tesla's output was seriously damaged in the second quarter. In the midst of the lockdowns, Tesla executives had no idea when they would end, or when employees would be allowed to go back to work. As a result, the company needed additional cash on hand to ensure that it could weather whatever lockdown-related obstacles arose. To build up a reserve of cash, the company decided to sell three-quarters of its Bitcoin holdings.
Source Fool.com
