After Selling BTC, Tesla Reports $2.26 bln in profit in Q2

After reporting vehicle production and delivery numbers for Q2 2022, Tesla finally released its full Q2 2022 financial report.

The report reveals how the company has been dealing with inflation and preparing for the upcoming economic meltdown. Tesla said that it converted about 75% of its BTC holdings into fiat currency. The conversion generated $936 million in cash for the company and left the value of its remaining “digital assets” standing at $218 million.

Last year, Tesla invested $1.5 billion in Bitcoin and announced that it would accept Bitcoin as payment. As promised, the company started accepting Bitcoin in late March, then abruptly reversed itself in May, just 49 days later.

During an investor call, Musk tried explaining that the selloff should not be taken as some verdict on Bitcoin.” Instead, he said, Tesla sold its Bitcoin because it was

concerned about overall liquidity of the company given COVID shutdowns in China. We have not sold any of our Dogecoin.

The company reported $2.26 billion profit in Q2, a 31 per cent decrease from last quarter, when it announced profits of $3.3 billion. The profit was earned on $16.9 billion in revenue, which is also down from Q1, where the company reported bringing in $18.7 billion.

Tesla attributes that to several factors, including “lower stock-based compensation expense,” more vehicle deliveries compared to last year, and an updated average selling price.

In Q2 the company delivered 254,695 EVs, a big drop compared to the first quarter of 2022, when the company delivered 310,048 vehicles.