TSL missed out on billions of dollars in Bitcoin profits.

#btc# ETh#pi
TSL's revenue and profit in the second quarter experienced a double-digit decline, falling short of expectations, while missing out on the Bitcoin surge. TSL's second-quarter report shows that, amidst a continuous decline in car sales, its revenue and net profit both saw a double-digit decline, not meeting expectations. However, in this disappointing financial report, there is another "mistake" that people have overlooked.
——Missed out on the benefits of the Bitcoin surge. The financial report shows that the company's current digital asset valuation is $1.24 billion. Although this figure represents a significant increase from $722 million a year ago, anyone paying attention to the cryptocurrency market will easily notice that this actually means the electric vehicle manufacturer has missed out on billions of dollars in "potential earnings".
After the release of the latest financial report, TSL stocks plummeted 8% on Thursday, down about 20% year-to-date, the largest decline among the seven major tech giants. The "misstep" dates back to 2021, when TSL purchased $1.5 billion worth of Bitcoin, betting on the "long-term potential" of this digital currency, hoping to "increase flexibility for the company's cash reserves, further diversify allocations, and maximize returns." The company's CEO, Musk, has also openly expressed his support, and Bitcoin has soared 20% in a single day due to his backing. However, by mid-2022, the global market landscape had changed significantly.
The prosperity of the "COVID-19 era" has passed, replaced by soaring inflation and rising interest rates, prompting investors to flee risk assets. TSL is no exception. The company stated in the second quarter of that year that it sold three-quarters of its Bitcoin holdings, at a time when both the stock and cryptocurrency markets were plummeting, adding cash to the company's balance sheet. And in that year, TSL's market value shrank by about two-thirds, while Bitcoin's price also fell by 60%.
However, since then, Bitcoin has rebounded significantly, and this year, the Trump administration's efforts to relax regulations and the commitment to establish a Bitcoin strategic reserve have further boosted Bitcoin.
Currently, the trading price of Bitcoin has exceeded $118,000, which is an increase of about 6 times compared to the end of the second quarter of 2022 (when TSL massively sold off Bitcoin). According to TSL in 2021
The estimated Bitcoin purchase amount indicates that if TSL had not sold 75% of its holdings, the current valuation of digital assets would reach $5 billion instead of the current $1.24 billion. The $936 million worth of Bitcoin that the company cashed out at that time is now worth over $3.5 billion at current prices.
Although Musk has made it clear that his electric vehicle company’s future focus is on autonomous taxi services and humanoid robots, rather than cryptocurrency investment, the company is currently struggling.
TSL also acknowledged that President Trump's tariff policies and the expiration of the federal electric vehicle tax credit could harm the company's core business in the coming quarters. The second quarter financial report also showed that TSL's digital assets are boosting its profitability. In the second quarter, the revenue from Bitcoin reached $284 million, while the company's total net income for the same period was $1.17 billion.
Therefore, analysts believe that TSL actually needs cash injection very much. If it had not missed out on the benefits of Bitcoin's rise, it might not be "that difficult" today.