El Salvador is not the only one that has bet on bitcoin and is suffering the consequences of the crypto winter. Like Nayib Bukele, Elon Musk has shown his passion for the main cryptocurrency. So much so, that in early 2021 he announced that Tesla would make an investment of 1.5 billion dollars in bitcoin. A year and a half later, the cryptocurrency has closed its worst quarter in a decade and cannot get too far from around $20,000. For the electric car manufacturer, this collapse translates into losses amounting to billions of dollars.
When Tesla made this investment, the price of bitcoin rose to $45,000, a high that it later broke several times to reach $69,000. However, market conditions have changed a lot since then. The crash of terra and token luna has dragged companies in the sector into a situation unthinkable two months ago: the investment fund Three Arrows Capital has declared bankruptcy; Crypto finance and lending firm Celsius Network has been forced to suspend cryptocurrency withdrawals, trades and transfers; Y .
In the case of Tesla, the crypto winter translates into considerable losses. Although throughout 2021 the electric car manufacturer sold some of its bitcoins, the value of its assets in this digital currency was around 2,000 million dollars at the end of that year, according to the statement sent by Tesla to the Stock Exchange Commission. and Securities (SEC).
In one year, Tesla’s investment has been reduced from 1,500 million to 1,260 million, according to the company’s account books. According to elDiario.es calculations, if the electric car manufacturer decided to put its bitcoins up for sale, it would lose 440 million dollars.
Another option would be to hold the investment while waiting for a comeback in the price of the cryptocurrency. However, Tesla may not be in a position to hold out, as evidenced by the fact that it will announce in June on the future of the US economy. In addition, the automaker is grappling with supply chain disruptions, which are causing “billions of dollars” in losses at its Texas and Berlin assembly plants.
We will have to wait until July 20 to find out the impact that the crisis in which the cryptocurrency sector is immersed has had on Tesla’s investment. At the moment, it is known that its share price has fallen by almost 40% since the beginning of the year.
Apple, Amazon and Rivian sign workers laid off by Tesla
The layoffs announced by Tesla in June have been gradually becoming a reality. In the past 90 days, nearly 450 employees have left Tesla and joined the workforce at Apple, Amazon and Rivian, among other companies, according to LinkedIn data collected by Punks & Pinstripes.
Of those 450 laid-off employees, 90 have gone to work with its main rivals: Rivian and Lucid Motors. While 8 have chosen to switch to traditional cars, such as Ford and General Motors.
For their part, Apple and Amazon have hired more than 100 former Tesla workers. Like Zoox and the electric vehicle battery recycling company Redwood Materials, according to Business Insider.
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