Electric Vehicle giant, Tesla, who just yesterday, hit trillion-dollar status and is headed by world’s richest man and Dogecoin enthusiast, Elon Musk, in its quarterly earnings report to the United States Securities and Exchange Commission (SEC), indicated that it may resume transactions in digital assets for its products and services.
In the quarterly report, under Digital Asset Net, it stated, “We may in the future restart the practice of transacting in cryptocurrencies (“digital assets”) for our products and services. We account for such non-cash consideration at the time we enter into transactions with our customers in accordance with the non-cash consideration guidance included in the Accounting Standards Codification (“ASC”) 606, Revenue from Contracts with Customers, based on the then current quoted market prices of the digital assets.”
The company also expressed its long-term belief in crypto assets as a store of value and means of payment stating, “We believe in the long-term potential of digital assets both as an investment and also as a liquid alternative to cash. As with any investment and consistent with how we manage fiat-based cash and cash-equivalent accounts, we may increase or decrease our holdings of digital assets at any time based on the needs of the business and our view of market and environmental conditions.”
What You Should Know
In June, CEO Elon Musk indicated that Tesla would consider resuming support for Bitcoin payments once at least half of the Bitcoin’s network hash rate is powered by renewable energy.
Reports from the North American Bitcoin Mining Council led by Michael Saylor, for the second quarter, estimated that the global Bitcoin mining industry now uses 56% sustainable energy.
The report comes amid news that Tesla’s market cap topped $1 trillion after securing a landmark deal with car rental company Hertz. Tesla’s share price also rallied about $1k for the first time ever.
The third quarter unaudited report revealed a revenue generation of $36.1 billion, which is up by 73.64% compared to the $20.8 billion generated as at the third quarter of 2020.
The company’s net income according to the unaudited report stood at $3.3 billion, up 483% from the $566 million generated as at the third quarter of 2020.
Tesla’s share price, after yesterday’s monumental achievement closed at $1,024.86, up 12.66%. It is however down 0.47% in pre-market skirmish.