Tesla Considers Selling Bitcoin Holdings - InvestingChannel

Tesla Considers Selling Bitcoin Holdings

Electric vehicle maker %Tesla ($TSLA) did not buy or sell any %Bitcoin ($BTC) during the fourth quarter of 2022 and says it may offload its entire stake in the %Cryptocurrency if prices continue to rise this year.

The average price of Tesla’s Bitcoin holdings is $32,099 U.S. Should the price of the world’s largest digital token rise back to $32,000 U.S. or higher, the electric vehicle maker says it would consider selling out of its position and recovering its invested capital.

The report of Tesla’s Bitcoin activity and comments about a future sale were made as the electric vehicle maker reported record revenue for the fourth and final quarter of 2022, and said that it could produce more than two million vehicles in 2023.

According to the latest regulatory filings, Tesla holds 9,720 Bitcoins that are worth a total of $224.29 million U.S. based on the cryptocurrency’s current price of $23,075 U.S.

The price of Bitcoin has rallied to start the year, gaining 39% since the beginning of January. At the end of November 2022, Bitcoin’s price was below $16,000 U.S.

The rise in Bitcoin’s price in recent weeks has brought Tesla closer to breakeven on its position. Should the price continue to rise, the company says it would consider selling its Bitcoin stake.

Tesla was among the top mainstream companies to publicize its Bitcoin investments back in 2020. The company’s chief executive officer (CEO) Elon Musk has been a vocal champion of cryptocurrencies for many years.

However, despite its strong Q4 earnings report, Tesla has struggled in recent months with waning consumer demand and production problems. The company has been forced to discount prices on its electric vehicles in recent months.

Tesla’s stock has declined 54% over the last year to now trade at $144.43 U.S. per share.

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