Tesla’s latest fourth-quarter financial report shows that the company’s Bitcoin holdings are valued at $184 million, and it has not conducted any buying or selling operations for six consecutive quarters. This means that the company continues to hold approximately 9,720 bitcoins, with a total value of about $435 million.
Background:
Tesla sold 75% of its bitcoins, cashing in £936 million! Musk: Open to increasing holdings.
Table of Contents:
Financial report falls below expectations, stock price falls nearly 6% after hours.
Will Optimus Robot ship next year?
Sell 250,000 Cybertrucks annually?
Bitcoin market cap surpasses Tesla’s again.
Investing $1.5 billion at the beginning of 2021.
Purchase:
Tesla, the electric vehicle manufacturer that purchases bitcoins, announced today in its fourth-quarter financial report that although its revenue and profit did not meet analysts’ expectations, the company did not sell any bitcoins in the fourth quarter of last year. It has been six consecutive quarters without any buying or selling operations.
The latest balance sheet shows that Tesla still holds digital assets with a book value of $184 million. It is understood that the company still holds 9,720 bitcoins, with a value of about $435 million at the current price.
Note: Accounting rules do not allow the recognition of unrealized gains from cryptocurrencies. Conversely, if there are unrealized losses, Tesla needs to recognize asset impairment.
After purchasing bitcoins at the beginning of 2021, Tesla sold 10% of BTC in the first quarter, making a profit of over $100 million. Then in the second quarter of 2022, Tesla sold 75% of its bitcoins, earning approximately $936 million.
Source: Tesla Q4 Financial Report P26
Financial report falls below expectations, stock price falls nearly 6% after hours.
However, what investors should be most concerned about is Tesla’s operational status. The latest financial report shows that Tesla’s automotive revenue growth rate has dropped to 1%, with total revenue increasing by only 3% to $25.16 billion, below the expected $25.76 billion. The gross margin slightly decreased to 17.6%, and the operating profit margin was 8.2%, lower than the 16% of the same period last year but slightly higher than the 7.6% of the previous quarter. EPS was $0.71, lower than the expected $0.74 by LSEG (formerly Refinitiv).
With revenues and profits falling short of analysts’ expectations, Tesla fell nearly 6% in after-hours trading and has plummeted over 16% since the beginning of the year. The decrease in revenues and profits is attributed to two main factors: a decrease in average vehicle selling prices and an increase in operating expenses driven by “artificial intelligence and other research and development projects.”
Tesla stated in its investor presentation that as the company strives to launch the next generation of affordable cars in Texas, this year’s car sales growth “may be significantly lower” than last year’s growth rate. The company informed investors that it is currently between two major waves of growth.
When asked about the production schedule of the humanoid robot Optimus during the earnings call, Musk said it is “very likely” that a certain number of Optimus robots will be delivered next year. However, he also admitted that his expectations for the timeline are often too optimistic.
Musk strongly emphasized the potential of Optimus, believing that its value will far exceed all of Tesla’s current businesses. He explained that the technology developed in Tesla’s automotive unit can be well applied to Optimus because cars are essentially “four-wheeled robots.”
In addition, Tesla has started selling Cybertrucks to customers. The company currently has the capability to produce over 125,000 vehicles within a year, but due to its manufacturing complexity, it is expected to take longer to increase production than other models.
During the earnings call, Musk referred to the Cybertruck as “the best product ever and a remarkable product” and optimistically stated, “I think we will deliver about 250,000 Cybertrucks annually.”
It is worth mentioning that although the price of Bitcoin has been under pressure recently, fluctuating around $40,000, according to the latest data from 8marketcap, the market value of Bitcoin has now surpassed that of Tesla, ranking 11th in global asset market value.
Currently, the market value of Bitcoin is approximately $784.5 billion, with a slight increase of 0.67% in the past 24 hours. The market value of Tesla is approximately $660.6 billion, and the stock price fell 0.63% yesterday.
Source: 8marketcap
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