Tesla lost more than $200 million last year out of the blue. The reason was the fall in the value of the world’s largest cryptocurrency.

What is known

Elon Musk’s company purchased Bitcoin back in 2021. Tesla invested $1.5 billion in digital currency during the first quarter of 2021. The electric car manufacturer saw Bitcoin as a good asset to invest in.

Executives believed that Bitcoin was a better investment than buying bank assets. At first, things went well. Tesla quickly made $101 million with digital currency. In the spring of 2021, the value of Bitcoin jumped after Elon Musk announced that when buying Tesla electric cars, you can pay with cryptocurrency.

In 2022, the value of Bitcoin began to plummet. This forced Tesla to sell 75% of its digital assets. Now the cost of BTC is approximately $23,000. Since December 2021, the price has dipped by 66%. During 2022, Elon Musk’s company lost $204 million. Now Tesla’s cryptocurrency portfolio is estimated at $184 million.

A source: TechCrunch