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Tesla stated that its Bitcoin holdings, due to BTC’s flat price, did not change. It also stated that it neither bought nor sold more.
EV manufacturer Tesla (NASDAQ: TSLA) disclosed that the value of its Bitcoin (BTC) holdings at the end of the fourth quarter (Q4) did not change. The company released its Q4 report on Wednesday, January 27th, adding that it did not buy nor sell the crypto in the quarter. Tesla also stated that it recorded no BTC impairments because the asset’s price essentially remained the same throughout the period.
Tesla Bitcoin Holdings
Approximately a year ago, Tesla announced a $1.5 billion BTC purchase amid plans to accept crypto payments. At the end of the first quarter, the EV company had sold 10% of its BTC stake, which boosted quarterly earnings by $272 million. Tesla did not buy or sell any BTC in the second quarter, nor did it do so in the third quarter. However, the Elon Musk-led company had to report a $51 million impairment during Q3 to reflect the decline in the token’s price. This is because accounting rules stipulate that if the price of a digital asset falls during a quarter, a company must report an impairment. However, a price increase does not warrant a ‘gains’ report on the balance sheet.
Tesla Q4 Outlook
Tesla’s earnings per share for the fourth quarter (adjusted) was $2.54, which exceeded Wall Street’s expectations of $2.36. Furthermore, the EV company also posted revenue of $17.7 billion, which edged out analysts’ $17.1 billion expectation. Of the reported sales sum, $314 million came from regulatory credits.
Following the earnings report, Tesla’s share price dipped by about 4% only to recover later. As of press time, the automaker’s stock is trading just a hair above $937.
Despite Tesla’s better-than-expected Q4 earnings, the electric vehicle manufacturer says production continues to suffer from supply chain issues. Tesla touched on this in a statement which read:
“The rate of growth will depend on our equipment capacity, operational efficiency and the capacity and stability of the supply chain. Our own factories have been running below capacity for several quarters as supply chain became the main limiting factor, which is likely to continue through 2022.”
However, Wall Street believes that Tesla is handling the perceived supply constraints better than some rival automakers. Earlier in the month, the Texas-based company reported deliveries of 308,600 vehicles for the fourth quarter. This now brings the total number of automobiles delivered for 2021 to 936,172, a new record. Among Tesla’s Q4 deliveries were 296,850 Model 3 and Y vehicles, and 11,750 Model S and X models.
At the moment, the demand for Tesla electric vehicles still outstrips supply. Some analysts believe that the new production in Austin, Texas – Tesla’s new base, and Berlin, would address these issues. However, the EV company is currently awaiting a manufacturing permit from local authorities in Germany. This is requisite to the delivery of German-made cars in Europe.