According to Tesla’s fourth-quarter earnings report released on Wednesday, its BTC assets are still in the red. The business’s overall earnings and revenue, however, have outperformed projections.
In the last five days, TSLA stock has increased by more than 13%, and it’s still up today. With CEO Elon Musk predicting that the company might build two million Tesla cars this year, his prediction has positively affected the company’s shares.
Tesla’s overall revenue was $24.32 billion, or approximately $200 million more than the $24.16 billion estimate. Instead of the anticipated $1.13, earnings per share came in at $1.19. Although the business acknowledged declining average sales price, it argued that lower rates were required to make EVs more accessible to a larger population.
The EV manufacturer also disclosed a 33% increase in automotive revenue over the previous year. Its fourth quarter overall revenue was $21.3 billion. However, Tesla announced a $34 million impairment cost for its Bitcoin holdings.
Additionally, it didn’t purchase or sell any Bitcoin during the previous quarter; its assets were $184 million.
Tesla’s BTC Investment
Tesla’s acquisition of $1.5 billion in Bitcoin in February 2021 was the event that first rocked the crypto and financial industries. This considerable investment has experienced significant value fluctuations due to market conditions.
Comparisons between Tesla’s and MicroStrategy’s investments in cryptocurrency are frequent since both companies are well-known and rank among the top BTC investors.
In contrast to Tesla, MicroStrategy is more optimistic about BTC as an investment asset, with its CEO Michael Saylor one of the cryptocurrency’s most ardent supporters. Over the years, the company has purchased BTC, with its latest acquisition being in December 2022, when it acquired 2,501 BTC.
The corporation currently holds 132,500 BTC in total, equivalent to $3 billion at the current exchange rate. However, the company’s undisclosed losses from its Bitcoin investment totaled $1.8 billion due to the crypto winter.
Currently, the EV manufacturer owns 9,720 BTC at an average acquisition cost of $32,099 per BTC following a $34 million impairment. Nevertheless, many investors are still surprised by the BTC price surge, which began in January 2023.
Consequently, there has been an increase in holders’ and miners’ drive to obtain cash after the protracted bear market of 2022. As a result, new investors and miners can now seize the chance to exit and secure rewards on the Bitcoin network.
For long-term holders, BTC’s bullish action further strengthens their resilience.