Electric car maker Tesla (TSLA) took an impairment charge of $51 million in the third quarter to account for its bitcoin holdings.
- Elon Musk’s electric vehicle company reported no new sales or purchases of digital assets, according to its 3Q earnings presentation. The company currently holds $1.26 billion in bitcoin.
- According to accounting rules for digital assets, if the price of an asset falls during the quarter a company must report an impairment, but if the price increases it is not reported as a gain on the balance sheet.
- Bitcoin gained roughly 30% in the third quarter, rising to about $43,800.
- Tesla announced in February it had purchased $1.5 billion worth of bitcoin. Later in Q1, the company trimmed its bitcoin position by 10%, a sale that boosted that quarter’s earnings by $272 million. Tesla also didn’t buy or sell any bitcoin in the second quarter.
- Overall, Tesla’s adjusted Q3 earnings per share came in at $1.86 versus $1.62 expected, according to FactSet, while revenue came in at $13.76 billion vs. $14.00 billion expected.
- Tesla’s share price fell 0.2% to $864.22 in after-hours trading on Wednesday.
UPDATE (Oct. 20, 21:03 UTC): Added information in the second bullet point.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is an award-winning media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. In November 2023, CoinDesk was acquired by Bullish group, owner of Bullish, a regulated, institutional digital assets exchange. Bullish group is majority owned by Block.one; both groups have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary, and an editorial committee, chaired by a former editor-in-chief of The Wall Street Journal, is being formed to support journalistic integrity.