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Tesla Did Not Buy or Sell Any Bitcoin in the Fourth Quarter

Tesla Did Not Buy or Sell Any Bitcoin in the Fourth Quarter

Electric vehicle manufacturer Tesla (TSLA) reported Wednesday in its most recent earnings report that it did not buy or sell any bitcoin in the fourth quarter for the second consecutive quarter.

Due to impairment charges brought on by a decline in the price of bitcoin, the value of its digital assets at the end of the third quarter fell to $184 million from $218 million at the end of the second quarter. Bitcoin’s price was just under $20,000 at the end of the third quarter and around $16,500 at the end of the fourth.

Additionally, Tesla did not alter its holdings of bitcoin in the third quarter. However, in the second quarter, to the surprise of some investors, the company sold $936 million worth of bitcoin, or roughly 75% of its total holdings, in order to raise money due to the uncertainty surrounding COVID-19 lockdowns in China. Elon Musk, the company’s CEO, however, stated that the sale “should not be taken as some verdict on bitcoin” and that the company was open to increasing its exposure to bitcoin in the future.

Overall, Tesla’s adjusted earnings per share for the fourth quarter came in at $1.19, exceeding the $1.13 consensus analyst estimate reported to FactSet, while revenue came in at $24.3 billion, falling short of analyst expectations of $24.7 billion. In after-hours trading on Wednesday, Tesla shares fell 0.3% to $143.95 per share.

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