- Tesla has reportedly made more revenue from its investment in bitcoin than it did in car sales in the first quarter
- Elon Musk's company had invested $1.5 billion in bitcoin in February 2021, and that investment rose to $2.5 billion in two months
- Car sales and solar panels had reportedly recorded $25 million loss during the first quarter of this year
Tesla's core business, car sales, was overshadowed by bitcoin as the cryptocurrency reportedly made more money for the automotive company within the first quarter of 2021.
In February 2021, Elon Musk had reported that Tesla purchased $1.5 billion worth of bitcoin. That investment rose to $2.5 billion after gaining about $1 billion at the end of March.
Tesla had sold 10% of the bitcoin it purchased in February and received $101 million as proceeds from the sale and received $272 million in proceeds.
While bitcoin gained in the three months of 2021, it was reported that the car manufacturer experienced loss in car sales, JP Morgan's Ryan Brinkman, who tracks Tesla told JPMorgan Chase.
Brinkmanship told investors in a note that when proceeds and profit are excluded from the Tesla's total profit of $438 million, it showed a loss of $25 million in car sales and solar panels.
It was reported that a quarter of the earnings was attributed to bitcoin. Speaking on Tesla's plan for bitcoin during investors' call, Chief Financial Officer of Tesla, Zachary Kirkhorn, revealed that:
“We do believe long-term in the value of Bitcoin." He said during investors call.
Kirkhom further stated that;
“It is our intent to hold what we have long-term and continue to accumulate Bitcoin from transactions from our customers as they purchase vehicles.” Kirkhom said.
Tesla plans to hold the remaining bitcoin for long, as it has included the most popular cryptocurrency into its balance sheet.
Meanwhile, Legit.ng had earlier reported that the Central Bank of Nigeria sacked all the board members of First Bank after threatening disciplinary action for changing their leadership without prior notice to the CBN.
It was also noted that the change wasn't approved by the financial regulator. Sola Adeduntan, the CEO, was replaced by Gbenga Shobo despite having about eight months to the end of his tenure.
The sacked board of directors were replaced by the CBN, including the chairman of First Bank, Ibukun Awosika. Adeduntan was restored as CEO, while Shobo was made the deputy.