Elon musk says tesla has diamond hands on crypto

In its earnings report, Tesla revealed that it has sold approximately 75% of its bitcoin purchases and took an impairment.

"As of the end of Q2, we have converted approximately 75% of our Bitcoin purchases into fiat currency. Conversions in Q2 added $936M of cash to our balance sheet," the company said in the earnings presentation.

Bitcoin wont be converted to fiat

It doesn't outline how large the impairment was. At the end of 2021 Tesla held about $2 billion worth of BTC and was reported at 43,200 bitcoin. It's fallen about 50% since then. Initial purchases averaged $32,610 but some was added later and there was a stream of different prices when the company was accepting bitcoin payments.

The $963 million number suggests a roughly $1 billion loss since the turn of the year.

In terms of earnings , the EPS at $2.27 beat the estimate of $1.80 while revenue was at 16.934 billion compared to 17.2 billion expected. A year ago revenues were at $11.958 billion.

Gross margin was at 27.9% compared to 28.4% last year. Exclude zero-emission credits and it falls to 26.2%.

For the broader market, the comments in the conference call will be interesting. Recently he said he had a 'super bad' feeling about the economy.

Shares have rallied initially after the report to $769 from $741 at the close.

On July 14, Musk said "I might pump, but I don't dump."

I guess not but it's looking like they sold at the lows. Bitcoin appears to be taking this news badly and has fallen back to $23,000.

Bitcoin chart after Tesla sold