In the ever-evolving world of crypto, the EV giant Tesla continues to capture headlines. The latest quarterly report for Q4 2023 reveals that Tesla has opted for stability in its crypto strategy, maintaining its Bitcoin holdings without buying or selling.
Tesla’s Consistent Approach
This marks the sixth consecutive quarter that Tesla has held its ground with 9,720 BTC, currently valued at an impressive $386 million. The decision to maintain its Bitcoin position shows Tesla’s confidence in the long-term viability of crypto as part of its portfolio.
The market response has been more nuanced compared to Tesla. After the Q4 update, Tesla’s stock witnessed a decline in after-hours trading, extending a trend that has persisted since the beginning of the year.
Balancing Act and Financial Realities
Despite the challenges in the stock market, Tesla’s impressive performance in its core business—electric vehicle sales—shines through. The company exceeded delivery predictions for Q4 2023, selling a record-setting 484,507 vehicles during the quarter and surpassing its annual target of 1.8 million with a total of 1.81 million sold throughout the year.
However, the Q4 earnings report doesn’t tell the whole story. Tesla fell slightly short of analyst estimates on the top and bottom lines. Adjusted earnings per share reported at $0.71, just below Wall Street’s projected $0.73, and revenue came in at $25.17 billion, missing expectations of $25.87 billion.
Tesla’s Bitcoin Journey
Tesla’s venture into crypto began in February 2021 with a groundbreaking $1.5 billion Bitcoin investment, acquiring around 43,000 BTC. At the same time, the company announced the acceptance of Bitcoin as a form of payment. However, subsequent decisions saw a reversal of this policy, with Tesla strategically reducing its Bitcoin holdings.
In early 2021, Tesla sold 4,320 BTC, and later in the year, it further decreased its exposure by unloading 75% of its remaining stake.
A Noteworthy Portfolio
As it stands, Tesla’s Bitcoin holdings, exclusively consisting of 9,720 BTC, position the company as the fourth-largest publicly traded entity in terms of Bitcoin holdings.
As Tesla continues its journey at the intersection of electric vehicles and cryptocurrencies, investors and industry enthusiasts will be following the company’s strategic moves and financial performance in the coming quarters.