The leading electric car company Tesla held on to its Bitcoin holdings during the end of 2022. Documents reveal that the company held $184 million in virtual assets at the end of the year.
As per Jan 25 Q4 results, Tesla’s financials revealed that the company neither purchased nor sold its Bitcoin holdings amid the crypto market crash and the sudden downfall of the crypto exchange FTX.
During Q1 of 2021, Tesla bought 43,200 Bitcoin for $1.5 billion. The company’s Bitcoin holdings reached $2.28 billion and ended 2021 at nearly $2 billion.
In mid-2022, Elon Musk, Tesla CEO, announced that the company decided to liquidate 75% of its Bitcoin holdings for $936 million due to the sudden outbreak of COVID-19 and the sudden rise of production costs in China.
Earlier in 2022, Musk tweeted that he will hold his personal Bitcoins and had no intention of selling them.
Evolution of Tesla
Popular automakers such as Ford and Honda have been dominating the automobile sector for several decades. But a great company, which two engineers introduced in 2003, stood out from the mix. In 2012, the Model S by Elon Musk and Tesla had gained tremendous popularity worldwide. Currently, the market capitalization of Tesla is nearly $452.57.
The main motto of Tesla is to create more sustainable transport and energy that is obtained through electric vehicles and solar power. “Electric vehicles can be better, quicker, and more fun to drive than gasoline cars.”
Within one month, Tesla crossed all-time sales records in September 2014, when the company sold more than 2,500 cars. In 2015, it again created a record by selling 10,030 cars within one month. In 2021, it experienced the highest worldwide sales of 21 % battery electric vehicles and 14% plug-in electric vehicles.
In September 2022, the Tesla Model Y created a record in Europe by registering 29,367 cars within one month. According to the reports, Model Y was the best-selling vehicle in Germany and the second best-selling vehicle in the United Kingdom.
On Jan 26, 2023, Tesla released its Q4 report, where the company recorded $5.7 billion in profits from $24.3 in revenues. Tesla celebrated a profit of $20.8 million for 2022 from $81.4 billion in revenues.
Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.
Source: https://www.thecoinrepublic.com/2023/01/28/tesla-held-on-to-its-bitcoin-in-q4-despite-the-market-conditions/