Tesla sells 75% of its bitcoin as profits slump due to production challenges

CEO Elon Musk said the cryptocurrency sale was to maximize its cash position only, but prices still slid after Wednesday’s report

Tesla’s second quarter of 2022 came to a shaky end as the electric carmaker reported a drop in profit after it struggled to meet demand due to a shutdown of its Shanghai factory and production challenges at new plants. The company also sold 75% of its bitcoin holdings, leading to a slide in the cryptocurrency price.

Tesla’s second-quarter profit fell 32% from record levels in the first quarter, with the company reporting a $2.26bn net profit on Wednesday.