Elon Musk: Tesla sold 10% of its bitcoin to show it's a good alternative to cash




Elon-Musk
Elon Musk CEO Tesla

Tesla CEO Elon Musk declared on Tuesday that the electric vehicle maker had sold 10% of its bitcoin holdings to prove that it's a good substitute for cash.

He was responding to comments from the Barstool Sports founder Dave Portnoy, who questioned whether Tesla had profited from a bitcoin pump-and-dump scheme, a practice that encourages investors to boost the price of an asset-based on exaggerated statements.

Tesla disclosed on Monday that it had cashed out $272 million worth of digital assets in the first quarter of 2021, making more than $100 million in profit. The automaker's first-quarter earnings showed continued profitability as revenue rose 74% from the same period in 2020.

After the earnings report, Portnoy tweeted:

 Earlier this year, Portnoy said he would never buy bitcoin, but he's changed his stance and called himself a true believer in cryptocurrency.

On an earnings call with investors and analysts, Tesla's chief financial officer, Zachary Kirkhorn, said the company planned to continue adding bitcoin to its balance sheet from vehicle sales.

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