In other Tesla news, according to banking institution Barclays, Tesla’s bitcoin holdings may have significantly reduced the electric car manufacturer’s expected earnings. Bitcoin prices have fallen recently due to investors moving away from risky ventures due to growing inflation and fears of a global downturn.
Bitcoin has always been risky, but it took a nosedive in recent months. The digital currency stood above $22,000 on Monday, beginning the year at over $47,000. The main reason is global inflation and the increasing risk of a worldwide slowdown. Analyst Brian Johnson predicted that Tesla would disclose an impairment related to bitcoin of about $460 million.
Even as Tesla loses money because of Bitcoin, Johnson still expects the popular electric vehicle maker to surpass earnings expectations for Q2 since their Shanghai factory is producing over 200,000 vehicles rapidly.
However, Tesla suffered from slowdowns in production, mainly in Berlin and Austin, which Elon Musk calls “gigantic money furnaces.” Barclays is steadily increasing as it sets stock prices at $380 per share from $370 a share. Tesla‌ shares are down 32%.
Did you enjoy this article? Read other articles on CBT News here. Please share your thoughts, comments, or questions regarding this topic by submitting a letter to the editor here, or connect with us at newsroom@cbtnews.com.
Be sure to follow us on Facebook, LinkedIn, and TikTok to stay up to date.
While you’re here, don’t forget to subscribe to our email newsletter for all the latest auto industry news from CBT News.
