Tesla, Inc. (NASDAQ: TSLA) has divested 75% of its Bitcoin (BTC) holdings to boost its liquidity position, the company said in its second-quarter earnings report.
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“As of the end of Q2, we have converted approximately 75% of our Bitcoin purchases into fiat currency. Conversions in Q2 added $936 million of cash to our balance sheet,” the EV maker said.
In a letter to its shareholders, the company mentioned that the sale impacted its second-quarter profit and operating income.
What Did Musk Say?
Musk said, “Tesla sold its Bitcoin possession to maximize its cash position owing to the uncertainty related to the COVID shutdowns. Tesla’s crypto sale should not be considered as some verdict on Bitcoin.”
“We have not sold any of our Dogecoin,” he added.
Meanwhile, Tesla’s digital assets declined to $218 million in the second quarter of 2022 from $1.26 billion in the first quarter.
Analysts & Bloggers Are Cautiously Optimistic about Tesla
As per TipRanks, the stock has a Moderate Buy consensus rating based on 16 Buys, five Holds, and six Sells. TSLA’s average price target of $863.96 reflects upside potential of 16.4% from current levels.
Additionally, TipRanks data shows that financial bloggers are 68% Bullish on TSLA, compared to the sector average of 63%.
What Does This Mean for Tesla?
The fact that Tesla had to sell Bitcoin to boost its liquidity position shows that the EV giant is also not immune to the economic hurdles, which are being faced by the rest of the world. TSLA stock opened in the green on Thursday and was trading almost 3% up in the pre-market session at the time of writing.
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