Tesla’s supply chain struggles forced it to sell off 75% of its bitcoin
Tesla’s interest in bitcoin has been decried as a distraction and a side show for the electric car company. But when a widespread covid lockdown in China forced Tesla to shutter its Shanghai factory for 22 days in April, it became a lifeline. The shutdown’s impact on Tesla’s business was severe enough that the company sold off 75% of its bitcoin holdings to bolster its cash reserves.
“The reason we sold a bunch of our bitcoin holdings was that we were uncertain as to when the covid lockdowns in China would alleviate, so it was important for us to maximize our cash position,” CEO Elon Musk told investors on a July 20 earnings call.
“This should not be taken as some verdict on Bitcoin,” he added. “It’s just that we were concerned about overall liquidity for the company.”
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