Elon Musk says Tesla sold bitcoin to prove liquidity as cash alternative

Tesla fell as much as 3.1% in late trading after its results were announced Monday despite a record profit in the first quarter

Elon Musk said Tesla Inc. sold 10% of its Bitcoin holdings to demonstrate the token’s liquidity, while adding that he’s retained his personal investment in the cryptocurrency.

Tesla’s earnings report showed the firm -- which bought more than $1 billion of the tokens earlier this year -- generated $101 million in income from the sale. Musk said on Twitter that Tesla in essence was trying “to prove liquidity of Bitcoin as an alternative to holding cash on balance sheet.”

The world’s largest cryptocurrency was up 2.3% to $54,503 as of 10:18 a.m. in London on Tuesday. It’s tumbled from a peak of