Tesla Bitcoin Losses Stack Up But Revenue Beat Q4 Expectations

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Tes­la pub­lished its Q4 finan­cial report, beat­ing earn­ings and rev­enue expec­ta­tions. How­ev­er, its Bit­coin invest­ments remain at a loss.

Tesla’s Bit­coin invest­ments are still under­wa­ter, accord­ing to its fourth-quar­ter earn­ings report from Jan. 25. Despite this, the company’s over­all earn­ings and rev­enue have beat­en expectations. 

TSLA stock is up today and has grown by over 13% over the past five days. Shares of the com­pa­ny also rose when CEO Musk said that the com­pa­ny could poten­tial­ly pro­duce two mil­lion Tes­las this year.

Tesla TSLA share price chart by TradingView
TSLA Price by Trad­ingView

The total rev­enue that Tes­la earned was $24.32 bil­lion, which was about 200 mil­lion more than the pro­ject­ed val­ue of $24.16 bil­lion. Earn­ings per share reached $1.19 as opposed to the expect­ed $1.13. While the com­pa­ny did note that the aver­age sales price was on a down­ward trend, it coun­tered this by say­ing that more afford­able rates were nec­es­sary to help the EVs sell to a wider population.

The com­pa­ny also report­ed that its auto­mo­tive rev­enue was 33% up year-over-year. The total rev­enue here in the fourth quar­ter was $21.3 billion.

As for Tesla’s Bit­coin hold­ings, it report­ed $34 mil­lion in impair­ment charges. It also did not buy or sell any Bit­coin in the last quar­ter, with its total hold­ings val­ued at $184 million.

Tesla’s Bitcoin Investment 

Tes­la first shook the cryp­to and invest­ment world when it pur­chased $1.5 bil­lion worth of Bit­coin in Feb­ru­ary 2021. The siz­able invest­ment has seen its val­ue fluc­tu­ate tremen­dous­ly with the mar­ket, and in March 2021, Tes­la allowed pay­ments in Bitcoin.

How­ev­er, it paused BTC pay­ments not long after, caus­ing the asset’s price to fall. Since then, with Bitcoin’s price drop­ping, it report­ed impair­ment loss­es in con­sec­u­tive quarters.

MicroStrategy Not Backing Down From Bitcoin Bet

Tesla’s invest­ments in Bit­coin are often com­pared to MicroS­trat­e­gy, as both are estab­lished firms that are among the top investors in Bit­coin. Unlike Tes­la, how­ev­er, MicroS­trat­e­gy is far more bull­ish on Bit­coin, with CEO Michael Say­lor among Bitcoin’s strongest proponents.

Microstrategy Bitcoin holdings
Micros­trat­e­gy Bit­coin Hold­ings: Bit­coin­Trea­suries

The firm has con­sis­tent­ly bought BTC over the years, most recent­ly pur­chas­ing 2,501 BTC in Decem­ber 2022. The company’s total hold­ings are now 132,500 BTC, worth about $3 bil­lion at today’s prices. 

The com­pa­ny had $1.8 bil­lion in unre­port­ed loss­es from its Bit­coin invest­ment because of the cryp­to win­ter.

Disclaimer

BeIn­Cryp­to has reached out to com­pa­ny or indi­vid­ual involved in the sto­ry to get an offi­cial state­ment about the recent devel­op­ments, but it has yet to hear back.

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