Declining profits and rising costs: Tesla’s current quarterly figures are disappointing. At least the electric car manufacturer remains loyal to Bitcoin.
Tesla Holds Steady with Bitcoin Holdings Amidst Financial Shifts
In the latest report for the fourth quarter of 2023, electric car giant Tesla maintains its commitment to retaining its Bitcoin holdings, with the report revealing a total of $184 million in cryptocurrency under Elon Musk’s company.
However, this figure represents only a fraction of the substantial Bitcoin investment that once graced Tesla’s books. Back in February 2021, the company injected nearly $1.5 billion into Bitcoin and briefly embraced BTC as a payment method. A notable shift occurred in mid-2022 when the automaker converted 75 percent of its Bitcoin holdings into cash to mitigate production challenges in Asia.
The fourth quarter of 2022 witnessed another significant sell-off, resulting in Tesla’s Bitcoin holdings decreasing from $218 million to the current $184 million.
Despite these financial maneuvers, Tesla fell short of analysts’ expectations in its overall performance. While the electric car manufacturer achieved a 3 percent year-on-year increase in sales, pre-tax profits took a hit, plummeting by 47 percent to $2.1 billion. Concurrently, production costs experienced a notable surge, rising by 27 percent.
The repercussions of these financial shifts are evident in Tesla’s stock performance, with TSLA prices seeing a substantial drop of nearly 8 percent over the last 24 hours. Investors and industry observers are closely watching the electric car giant’s financial decisions as it navigates the intricate landscape of cryptocurrency investments and market dynamics.