(Noted News) — Tesla had the most successful quarter in its history this year, and it’s not from selling electric cars. Shattering investor’s expectations, the innovative tech unicorn posted revenue of $10.4 billion, and a net income of $438 million, a new quarterly record.
Tesla chief Elon Musk sent Bitcoin soaring to record highs when he changed his Twitter bio to “#Bitcoin,” shortly before Tesla announced a $1.5 billion purchase of the world’s flagship crypto asset to place on its balance sheet. Musk defended the purchase saying:
“Tesla’s action is not directly reflective of my opinion. Having some Bitcoin, which is simply a less dumb form of liquidity than cash, is adventurous enough for an S&P500 company. To be clear, I am not an investor, I am an engineer. I don’t even own any publicly traded stock besides Tesla. However, when fiat currency has negative real interest, only a fool wouldn’t look elsewhere. Bitcoin is almost as bs as fiat money. The keyword is ‘almost.’”
The company’s quarterly results reveal that they had subsequently sold part of their Bitcoin investment and printed profits in excess of $127 million, helping the company reach an all-time high quarterly income and maintain its crown as the world’s most valuable car company. The Bitcoin trade accounted for nearly 25% of its bottom line.
Tesla dwarfs the size of other car companies. At about $700 billion in market cap, this makes them five times bigger than the combined value of Ford and General Motors, despite selling less than half the number of cars as Ford.
Besides Bitcoin, Tesla makes virtually the entirety of its profits on selling regulatory credits to other automakers to help them meet emissions mandates, making many wonder if Tesla is a technology manufacturer or just a well-connected investment firm.
CEO Musk has been a vocal proponent of cryptocurrencies, not just Bitcoin, but also the obscure meme crypto Dogecoin, of which he is largely accredited for “sending to the moon” when he tweeted: “One word: Doge.”
SkyBridge Capital CEO and former White House Press Secretary Anthony Scaramucci has said that Musk’s Bitcoin investment is only the tip of the iceberg.
“Elon Musk didn’t stop with Tesla. I understand that SpaceX owns Bitcoin on its balance sheet. Elon Musk owns over $5 billion in Bitcoin via Tesla, SpaceX, and personally. No living person has done more to protect the planet against climate change.”