Tesla Inc. has found another way to muddy its results: bitcoin. Tesla TSLA, + 1.21% reported its seventh consecutive quarter of “earnings” on Monday, and like all previous earnings totals, it was outsold by regulatory credit sales with all earnings. The electric car maker reported $ 438 million, or 39 cents a share, in first-quarter earnings, aided by a record $ 518 million in regulatory credit sales.
That’s to be expected now, as Tesla sells as many credits as it needs to make a profit. Last quarter, that gain joined Tesla’s latest foray into the crypto world. Tesla said it sold about 10% of its bitcoin holdings a couple of months after buying about $ 1.5 billion of the digital asset in January. The sale also came after bitcoin BTCUSD CEO Elon Musk’s Twitter push, + 1.06% helped fuel a rapid price surge. Musk and Tesla CFO Zach Kirkhorn analyzed the first-quarter tactic as a wise move, and the sale was presented as a way to show investors that the crypto market is liquid on the scale that Tesla plays. “Up to this point, [it] has proven to be a good decision, a good place to put some of our cash that is not immediately used for day-to-day operation, “Kirkhorn, Tesla’s” Coin Master, “told analysts, with executives also claiming that Tesla would continue to have the rest of his bitcoin. Tesla’s “Technoking” also tackled the sale on his preferred social network: Tesla could become an interesting test case for corporate ownership of bitcoins, and it wouldn’t be surprising if Musk’s former nemesis The Securities and Exchange Commission would do some research, especially given his social media activity. The sale forced a $ 101 million impairment that the company acknowledged in a “restructuring and other costs” line that was new to its balance sheet. , and Tesla will need to be more specific about it when filing its quarterly report with the SEC. Also read: Bitcoin needs Tesla more than Tesla needs bitcoin Tesla will continue to allow By telling customers to make deposits and complete their car purchases in bitcoin, Musk has said Tesla will keep that bitcoin. Those statements suggest that bitcoin sales won’t become yet another Tesla gimmick to push each quarter to the black, like sales on regulatory credit, but Musk and Tesla have been known to fall short of forward-looking statements before.