Renowned electric vehicle manufacturer, Tesla, has confirmed its persistent commitment to Bitcoin, retaining Bitcoin investments worth approximately ZAR 3.3 billion ($184 million) for the fourth successive quarter. The details of the company’s digital asset holdings were made available in its Q2 2023 earnings report, disclosed on July 19. The report unveils that the net value of Tesla’s Bitcoin holdings has demonstrated remarkable consistency over the past two quarters.
Since the second quarter of last year, Tesla has restrained from any Bitcoin trading activities. Notably, during that period, Tesla unloaded over 30,000 Bitcoin units, representing approximately 75% of its total holdings at the time. This monumental sale yielded approximately ZAR 16.7 billion ($936 million).
Rewind to March 2021, Tesla made a substantial Bitcoin investment, purchasing ZAR 26.8 billion ($1.5 billion) worth of the renowned digital currency. Tesla’s CEO, Elon Musk, concurrently declared that the company would permit Bitcoin as a valid payment method for its products. However, this decision was shortly overturned as Musk expressed concerns surrounding Bitcoin’s environmental footprint, attributing it to the cryptocurrency’s significant energy consumption.
Despite Tesla’s impressive performance, surpassing expert predictions with adjusted earnings per share of $0.91 (outperforming forecasts by $0.09), and Q2 revenue of ZAR 445.1 billion ($24.9 billion) (exceeding anticipations by 0.81%), the market response was lukewarm. Tesla’s stock price experienced a dip of 4.19% to $279.07 in after-market trading.
Bitcoin itself encountered a near 5% decline for the week, with its trading price currently hovering around ZAR 534,787 ($29,914). Some traders are forecasting a potential retest of the ZAR 491,700 ($27,500) price point in the approaching future, as Bitcoin grapples to maintain its ground above the critical resistance level of ZAR 536,400 ($30,000).
While Tesla’s Bitcoin holdings remain unaltered, the firm’s primary focus on its key business and financial performance continues to mould its course in the market. Both investors and cryptocurrency enthusiasts in South Africa and globally will be keeping a keen eye on any forthcoming shifts in Tesla’s stance on Bitcoin, given the significant influence such movements could exert on the cryptocurrency market.