Tesla loses $204m in one year to Bitcoin's plunge in value

By: Maksim Panasovskyi | 02.02.2023, 13:20
Tesla loses $204m in one year to Bitcoin's plunge in value

Tesla lost more than $200 million last year, caused by a drop in the value of the world's largest cryptocurrency.

Here's What We Know

Elon Musk's company bought into Bitcoin back in 2021. Tesla invested $1.5bn in the digital currency during the first quarter of 2021. The electric car maker saw Bitcoin as a good asset to invest in.

Executives thought Bitcoin was a better investment than buying assets from banks. At first, things were going well. Tesla quickly made $101 million with the digital currency. In the spring of 2021, the value of Bitcoin jumped after Ilon Musk announced that cryptocurrency could be used to buy Tesla electric cars.

In 2022, the value of Bitcoin began to plummet. This forced Tesla to sell 75% of its digital assets. BTC is now worth around $23,000. Since December 2021, the price has dropped 66%. During 2022, Elon Musk's company lost $204 million. Tesla's cryptocurrency portfolio is now valued at $184 million.

Source: TechCrunch