Tesla, the electric vehicle giant, recently published Tesla Q4 2022 financial report, which showed that the company beat earnings and revenue expectations. However, the report also revealed that Tesla’s Bitcoin investments remain in the red. In this article, we will take a closer look at Tesla’s Q4 2022 financial report and analyze its impact on the crypto sector.
Earnings and Revenue Beat Expectations
Tesla’s Q4 2022 financial report showed that the company’s overall earnings and revenue beat expectations. The total revenue earned by Tesla was $24.32 billion, which was about $200 million more than the projected value of $24.16 billion. Earnings per share reached $1.19, as opposed to the expected $1.13.
The company also reported that its automotive revenue was 33% up year-over-year. The total revenue in the fourth quarter was $21.3 billion. Additionally, TSLA stock is up today and has grown by over 13% over the past five days.
Tesla’s Bitcoin Investments Remain Underwater
Despite the positive overall financial performance, Tesla’s Bitcoin investments continue to struggle. The company reported $34 million in impairment charges and did not engage in any buying or selling of Bitcoin in the last quarter, with its total holdings valued at $184 million.
Tesla’s Bitcoin investment strategy has been a point of interest and debate in the crypto and investment community. The company’s initial $1.5 billion purchase of Bitcoin in February 2021 was met with excitement and surprise, and in March 2021, Tesla announced that it would accept Bitcoin as payment for its products. However, the company later paused BTC payments, which caused a decline in the asset’s price. Since then, with Bitcoin’s value dropping, Tesla has reported impairment losses in consecutive quarters.
Tesla Crypto Investment Strategy
Tesla’s investments in Bitcoin have often been compared to those of MicroStrategy, another established firm that has made significant investments in the cryptocurrency. Unlike Tesla, MicroStrategy has remained bullish on Bitcoin, with CEO Michael Saylor being a vocal proponent of the asset. The company has consistently bought BTC over the years, with its most recent purchase being 2,501 BTC in December 2022. MicroStrategy’s total holdings are now 132,500 BTC, worth about $3 billion at today’s prices. The company has reported $1.8 billion in unreported losses from its Bitcoin investment due to the crypto winter.