Tesla, Elon Musk’s electric vehicle maker, said it had written off a $170 million write-down of bitcoin investments made in the first half of the year, but also posted gains of $64 million linked to bitcoin sales. .
Because accounting rules define digital assets as indefinite-lived intangible assets, Tesla said it needs to recognize write-downs to reflect any drop in the fair value of cryptocurrencies held by the company below their book value.
Last week, Musk revealed that Tesla sold $936 million worth of bitcoin in the second quarter to maximize its cash position as its factory in the Chinese city of Shanghai was closed due to a lockdown prompted by Covid-19 outbreaks.
The company sold about 75% of its initial $1.5 billion position in the cryptocurrency, holding about $218 million in digital assets at the end of June.
For a brief period, Tesla accepted bitcoin as payment for its vehicles, but ended up suspending the policy in May 2021 amid concerns about using fossil fuels to mine bitcoins. At the time, Musk said that Tesla would not sell bitcoins.
SEC Subpoena
Tesla reported on Monday (25) that the Securities and Exchange Commission (SEC, equivalent to the CVM in Brazil) has issued a second subpoena to the company due to a 2018 statement by Elon Musk, in which he says he was considering making the Private Tesla.
According to the company’s statement, the investigation was resolved and closed with an agreement entered into with the SEC in September 2018 and as clarified in an April 2019 amendment.
“There are and have not been any further developments in these matters that we deem relevant and, to the best of our knowledge, no government agency in any investigation has concluded that any wrongdoing has occurred,” the document reads.
“As is our normal practice, we have and will continue to cooperate with government officials. We cannot predict the outcome or impact of any ongoing matters. There is the possibility of a material adverse impact on our business, results of operations, prospects, cash flows and financial position.” With information from Dow Jones Newswires.
Source: CNN Brasil
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