Elon Musk’s Tesla Holds on to Bitcoin in Q4 Despite Market Turmoil

Electric vehicle maker Tesla refused to offload more Bitcoin (BTC) in the second half of 2022 despite selling 75% of its holdings in the second quarter.

In its latest fourth-quarter earnings report on Jan. 1. On January 25, financial data from Tesla shows that it has neither bought nor sold any of its Bitcoins for the second consecutive quarter. And this despite the severe market turbulence in November and December following the collapse of FTX.

The documents show that the company holds $184 million in digital assets as of December 1. On December 31, 2022, down from its $218 million in prior quarter holdings due to $34 million in impairment charges as Bitcoin’s price fell between late September and December last year .

Bitcoin was around $19,500 on September 1. 30 2022, before dropping almost 15% to $16,600 by December 31. 31.

The electric vehicle maker also held onto its bitcoin until the third quarter of last year after selling 75% of its bitcoin in the second quarter. The second-quarter sale added $936 million in cash to Tesla’s books and the company made a profit of $64 million.

Tesla CEO Elon Musk explained at the time that the sale was intended to “prove Bitcoin’s liquidity as an alternative to holding cash on a balance sheet.”

However, his bitcoin holdings or take on bitcoin were not discussed in Tesla’s latest earnings call on Jan. 21. 25. According to estimates, Tesla holds around 9,720 BTC.

Related: Troubles are brewing in the US: two-thirds of TradFi expect a recession in 2023

Overall, Tesla posted $5.7 billion in profit on $24.3 billion in revenue for the fourth quarter, with gross margins at the lowest level in five quarters. The company posted total profit of $20.8 million for 2022 on revenue of $81.4 billion.

Revenue missed analysts’ estimates, but earnings did better than consensus estimates.

Tesla stock price rose slightly on the day, closing with a gain of almost 0.40%. It continued to trade positively after hours, up almost 4.6% at the time of writing, according to data from Google Finance.