Even while Tesla is not yet reaping any profits from its Bitcoin investments, the total profitability and revenue of the firm have surpassed analysts' projections. The price of TSLA stock is now on the rise and has advanced by thirteen percent in the previous five trading days.
The company's Chief Executive Officer, Elon Musk, also contributed to a rise in share price when he indicated that the company could produce two million Tesla vehicles in 2018. It has come to light that Tesla did not sell (1) the surplus Bitcoin reserve, even though most people anticipated that the company would sell some of its crypto currency holdings during the fourth quarter of 2022.
Following a filing made public by the SEC, It is expected that Tesla has around $245 million worth of Bitcoin. This amount would represent the remaining twenty-five percent of the Bitcoin the company purchased during the crypto currency bull run of 2021.
Based on its Q4 and FY 2022 Updates, Tesla has maintained its crypto currency holdings even after the fall of the crypto market and the flood of negative news that submerged the crypto environment.
In the beginning, during the first three months of 2021, Tesla purchased 43,200 BTC for $1.5 billion. Despite the onset of the COVID-19 epidemic, which resulted in the termination of many employees and the failure of numerous companies in the United States, the corporation held on to its bitcoins for more than a year.
However, in July of the previous year, the company disclosed that it had been forced to sell seventy-five percent of its Bitcoin in exchange for $936 million. This was done due to an increase in the firm's production costs in China, which had gone through the roof to undignified levels due to the onset of yet another wave of coronavirus.
Tesla Not Getting Rid of Its Bitcoins Anytime Soon
Musk had stated at the time that the company would have an open mind regarding growing the total amount of Bitcoin assets in the company's portfolio in the future.
The successful entrepreneur had also specified in March 2022 that he had no intentions to liquidate any of his bitcoin holdings.
Bitcoin is one of the crypto currencies that Tesla is known to support. It was one of the first corporations to invest in substantial volumes of Bitcoin, and its first acquisition fueled the BTC's bullish surge, pushing it from $20,000 to over $70,000 over a year.
However, in the end, it decided to cut back on its participation in the BTC game owing to worries over the token's energy usage. A short time after that, the price of Bitcoin fell from $55,000 to $52,000 in a couple of hours.
The actual revenue that Tesla has made is around $24.32 billion, which is an increase of $200 million compared to the expected value of $24.16 billion. In contrast to the $1.13 that was anticipated, the earnings per share reached $1.19.
Even while the company admitted that the average sales price had decreased, it was balanced out by the more reasonable rates provided for the EVs to sell to a bigger market.
Musk, widely regarded as one of the most influential people in the world regarding crypto currencies, has been extremely vocal about his backing for digital assets like Bitcoin and Dogecoin.
The company presumably pauses to determine when the most advantageous moment would be to take action. It is also feasible that they are quietly keeping onto their Bitcoin hoard to invest in Bitcoin over the long run.