While last week, thanks to the actions of Elon Musk, Twitter was a company that the entire investment world talked about, yesterday another company directly related to the controversial billionaire deserved this name. Tesla (TSLA.US).
The (cryptocurrency) king is dead ...
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Open account Try demo Download mobile app Download mobile appUntil recently, Tesla was one of the largest and arguably the most recognizable Bitcoin owner. The positive sentiment on the cryptocurrency market suddenly weakened in the face of information that Tesla sold 75% of Bitcoin reserves, worth nearly USD 936 million. The main cryptocurrency plunged below $ 23,000, Ethereum falls below $ 1,500. The sale of reserves to improve the liquidity situation may indicate that the company has ceased to believe in the upward potential of Bitcoin in the current macroeconomic environment.
Tesla currently owns 218 Bitcoins, although Elon Musk said the company remains open to buying the 'king of cryptocurrencies' in the future. For the market, this means more or less that any information about Tesla's re-engagement in BTC could cause a price jump again. Tesla purchased Bitcoin in January 2021 when the price was around $ 30,000 (according to Forbes data). The reported sale in the first quarter of 2022 means that the company did not earn on this investment and "slept" the moment to obtain a nearly 100% return in the spring and autumn of 2021. The company probably closed the investment in Bitcoin neutrally on the so-called breakeven.
... long live the king (of electric cars)
Tesla shares are growing by over 6% after the company's publication of very good quarterly results. Originally, Wall Street feared that the second quarter of this year could prove "difficult" for an electric vehicle manufacturer in the face of persistent supply chain problems and plant downtime due to the pandemic. Tesla reported a quarterly decline in deliveries at the beginning of the month, which led to a reduction in analysts' forecasted revenues. A key risk factor for Tesla is China's zero Covid policy, which may exert pressure on margins. According to Credit Suisse analyst Dan Levy, margins can be expected to improve in the second half of the year due to increased sales volumes. Wall Street's fears turned out to be exaggerated. Tesla's revenues increased by 42% y / y in the second quarter of 2022, to USD 16.93 billion (approx. USD 17.1 billion). Earnings per share were $ 2.27 (approximately $ 1.81).
TESLA stock chart (TSLA.US), D1 interval.
Source: xStation 5
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