#Giveaway  on last slide

Tesla sold 75% of its Bitcoin

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Tesla has already announced vehicle delivery numbers for the 2nd quarter. Still, its complete quarter-end report (pdf) will reveal how it is facing the effects of inflation and economic slump, as well as an increase in the price of Bitcoin and other cryptocurrencies.

In its letter to the investors, Tesla executives reveal that the firm has reduced its Bitcoin holdings and added 936 million dollars in cash to its balance report.

In 2000, Tesla made a $1.5 billion investment in Bitcoin and announced that it would accept Bitcoin as a payment method. Tesla began accepting Bitcoin in March of this year but abruptly changed its mind in May, only 49 days later.

In the most recent publication, Tesla says the value of its remaining "digital assets" is $218 million, which was previously reported as approximately $1.2 billion in prior quarters.

Last July, Tesla CEO Elon Musk said, “I might pump, but I don’t dump ... I definitely do not believe in getting the price high and selling or anything like that. I would like to see Bitcoin succeed.”

During an investor call, Musk addressed the crypto selloff, saying that it “should not be taken as some verdict on Bitcoin.” Instead, he said, Tesla sold its Bitcoin because it was “concerned about overall liquidity of the company given COVID shutdowns in China.”

Basically, Tesla needed the cash. “We have not sold any of our Dogecoin,” Musk said, later going on to call cryptocurrency “a sideshow to the sideshow.”

When it comes to its business of making electric cars — where new competitors seem to be announced every day — and solar products, the company is reporting that it made $2.26 billion in profit this quarter, around a 31% decrease from last quarter when it posted earnings of $3.3 billion.

The profit was earned on $16.9 billion in revenue, also down from Q1, where the company reported bringing in $18.7 billion. In terms of profitability, the company is still doing better than it did in Q2 2021, making $1.1 billion on $11.9 billion in revenue. 

The company attributes that to several factors, including “lower stock-based compensation expense,” more vehicle deliveries compared to last year, and an improved average selling price. 

This is the first full quarter since Tesla raised the prices on all of its cars by as much as 10%, and it raised prices again on select models in June.

Despite the price increases, the company has broken with its trend of earning more per car each quarter. In Q1, its gross automotive margin was 32.9%. This quarter, it was 27.9%.