You can be on Entrepreneur’s cover!

Tesla Reports $170 Million Loss in Failed Bitcoin Investment The company invested over $1.5 billion into the coin during Q1 of 2021.

By Emily Rella

entrepreneur daily

Not even Elon Musk is safe from the volatility that comes with investing in crypto.

In a regulatory filing, Tesla reported that it suffered a $170 million impairment loss on its investment in Bitcoin during the first 9 months of this year, noting that it had also gained roughly $64 million by converting some of the Bitcoin that it owned into fiat money, a government-issued currency that is not backed by a commodity like gold or silver.

The electric car company offloaded $936 million in Bitcoin during Q2 2022, something Musk reportedly ordered in an attempt to gain back cash due to pandemic-related profit and revenue losses in Tesla's China market. Tesla originally invested $1.5 billion into BTC in January 2021.

Tesla still holds about $2.18 million in BTC per the company's Q3 2022 earnings report.

"Digital assets are considered indefinite-lived intangible assets under applicable accounting rules. Accordingly, any decrease in their fair values below our carrying values for such assets at any time subsequent to their acquisition will require us to recognize impairment charges, whereas we may make no upward revisions for any market price increases until a sale," Tesla said in Monday's 10-Q filing.

"For any digital assets held now or in the future, these charges may negatively impact our profitability in the periods in which such impairments occur even if the overall market values of these assets increase," they added.

The news comes as not a big surprise as the crypto world at large has taken a massive hit this year in what many have dubbed the "Crypto Winter."

Bitcoin is down just under 68% in a one-year period and a 72% drop from its all-time high of $68,789.63 in November of last year, per most recent data on Monday.

Still, Tesla is coming off of a strong third quarter despite BTC losses, clocking in a net income of $3.33 billion, over double the amount at the same time last year.

During the Q3 call, Musk was asked if he would consider putting all of his companies -- including Tesla and potentially Twitter -- under one stock umbrella to create a super company of sorts.

"It's not clear to me what the overlap is. It's not zero, but it's — I think we're reaching. I'm not worried about it," Musk said about the concept.

Tesla was down just over 40% in a one-year period as of Monday morning.

Emily Rella

Entrepreneur Staff

Senior News Writer

Emily Rella is a Senior News Writer at Entrepreneur.com. Previously, she was an editor at Verizon Media. Her coverage spans features, business, lifestyle, tech, entertainment, and lifestyle. She is a 2015 graduate of Boston College and a Ridgefield, CT native. Find her on Twitter at @EmilyKRella.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Editor's Pick

Resumes & Interviewing

Build a Better Resume with This $35 Subscription

AI Resume Builder promises to help you apply to jobs twice as fast.

Side Hustle

He Took His Side Hustle Full-Time After Being Laid Off From Meta in 2023 — Now He Earns About $200,000 a Year: 'Sweet, Sweet Irony'

When Scott Goodfriend moved from Los Angeles to New York City, he became "obsessed" with the city's culinary offerings — and saw a business opportunity.

Marketing

I Got Over 225,000 Views in Just 3 Months With Short-Form Video — Here's Why It's the New Era of Marketing

Thanks to our new short-form video content strategy, we've amassed over 225,000 video views in just three months. Learn how to increase brand awareness through short-form video content.

Business News

Samsung Makes 6 Day Workweeks Mandatory for Executives as the Company Enters 'Emergency Mode'

Samsung said its performance "fell short of expectations" last year. Now executives are required to work weekends.

Productivity

6 Habits That Help Successful People Maximize Their Time

There aren't enough hours in the day, but these tips will make them feel slightly more productive.

Leadership

You Won't Have a Strong Leadership Presence Until You Master These 5 Attributes

If you are a poor leader internally, you will be a poor leader externally.