Tesla bought $1.2 billion in Bitcoin in the first quarter of 2021

On April 27, Tesla released its first quarter financial report for 2021. In terms of cash, Tesla's operating cash flow (free cash flow) after deducting capital expenditures in the first quarter was US$293 million; borrowings and financial lease liabilities decreased by US$1.2 billion; cash and cash equivalents were US$17.1 billion, a decrease of US$2.2 billion.
Most notably, Tesla made a total profit of $101 million from the sale of Bitcoin in the first quarter, and spent as much as $1.2 billion (equivalent to RMB 7.7 billion) on "Bitcoin-related" expenses.
Musk said in a Twitter reply that Tesla sold 10% of the company's Bitcoin holdings to demonstrate the cryptocurrency's liquidity as a cash alternative on the balance sheet, and that he did not sell any of his personal Bitcoin holdings.

In terms of profitability, Tesla's GAAP operating profit in the first quarter was $594 million, with an operating profit margin of 5.7%; GAAP net profit was $438 million, non-GAAP net profit (excluding share-based payment expenses) was $1.1 billion; share-based payment expenses were $614 million. Given that the goals set by the board of directors were achieved in the first quarter, CEO Elon Musk is entitled to two option awards with a total value of $11 billion. Of course, Musk's rewards are not limited to this. Tesla said in its financial report that it will bear $299 million in expenses related to Musk's salary.
In a conference call after the release of the financial report, Musk said that Tesla faced difficult challenges in supply in the first quarter, and chip shortages were a "huge problem". Production at the Texas factory was limited this year, but supply chain issues have been largely resolved, and mass production will begin next year. The company's goal is to produce 2,000 Model S/X per week and 500,000 Model 3s per year. It is believed that Model Y is likely to become the best-selling car in 2022.
As for the decline in the average sales cost of Model 3, the financial report shows that the average cost of producing a Model 3 in 2017 was US$84,000 (equivalent to RMB 544,000). With the launch of new products and the establishment of new factories, as well as the reduction in the proportion of Model S and Model X, the average cost of Model 3 dropped to below US$38,000 (equivalent to RMB 246,000) in the first quarter.