Tesla’s bet on Bitcoin has already delivered a $101 million profit, the company said in its Q1 report.
Tesla revealed in February that it had bought $1.5 billion in Bitcoin. In a Securities and Exchange Commission filing, Tesla said it bought the bitcoin for “more flexibility to further diversify and maximize returns on our cash.”
The cryptocurrency has experienced a significant increase in value since the investment.
“Year over year, positive impacts from volume growth, regulatory credit revenue growth, gross margin improvement driven by further product cost reductions and sale of Bitcoin ($101M positive impact, net of related impairments, in “Restructuring and Other” line) were mainly offset by a lower ASP, increased SBC, additional supply chain costs, R&D investments, and other items,” Tesla said in the report. “Model S and Model X changeover costs negatively impacted both gross profit as well as R&D expenses.”
Tesla Chief Executive Elon Musk has been hyping crypto in recent months. In particular, he has promoted Bitcoin and Dogecoin. Tesla was also the first major automaker to allow bitcoin as payment.
Tesla reported record quarterly profit in its Q1 Update.