Tesla Holds Steady with Bitcoin Investment for Second Consecutive Quarter
Electric vehicle manufacturer Tesla has made no new Bitcoin transactions in Q4 2022, according to its latest financial report.
Tesla Maintains Bitcoin Investment for Second Consecutive Quarter
The Q4 2022 financial report reveals that Tesla still holds Bitcoin worth $184 million, down from $218 million at the end of Q3. The decrease is attributed to the significant decline in BTC prices during the last three months of 2022.
[DB] Tesla Crypto Holdings Unchanged
— db (@tier10k) January 25, 2023
This marks the second consecutive quarter that Tesla has left its February 2021 Bitcoin investment untouched. At that time, Tesla invested $1.5 billion in BTC and began accepting Bitcoin payments as directed by CEO Elon Musk. However, Musk's stance has since shifted; he no longer views Bitcoin as a viable asset, citing concerns about its energy consumption and its misalignment with Tesla’s operational philosophy. With purchase prices ranging between $33,000 and $38,000, Tesla is currently experiencing a significant loss on its Bitcoin investment.
In Q2 2022, Tesla announced it had sold 75% of its Bitcoin holdings, equivalent to over $936 million, to boost its cash reserves and support company operations.
Since then, Elon Musk and Tesla have pivoted to supporting Dogecoin (DOGE) and accepting it as payment instead of Bitcoin.
Tesla’s TSLA stock has faced significant pressure in recent months, affected both by the broader decline in U.S. equities due to the Fed’s ongoing rate hikes and investor concerns over Musk’s focus on his newly acquired company, Twitter, along with associated controversies.
Meanwhile, institutions and countries that invested in Bitcoin in 2021, such as MicroStrategy and El Salvador, are showing signs of returning to the market after months of dormancy.
