Tesla releases fourth-quarter financial report, holding 43,200 BTC unchanged, unrealized losses not recognized

Tesla released its fourth-quarter financial report for 2021, revealing that it did not sell any Bitcoin during the quarter. According to generally accepted accounting principles, the lowest price of Bitcoin in the fourth quarter was significantly higher than its cost, so there was no recognition of losses in the financial report. The value of Bitcoin held remained at $1.26 billion, the same as the previous quarter.

Financial Highlights

According to its 2021 Q4 financial report, the summary is as follows:

• Revenue of $17.7 billion, a 65% year-on-year increase, exceeding the expected $16.6 billion.
• Earnings per share of $2.54, a 218% year-on-year increase, higher than the expected $2.36.
• Cash reserves increased from $15 billion to $17.6 billion.
• Q4 production of 1.22 million vehicles, exceeding Q3 expectations.
• Delivery of the new Texas Austin factory is imminent.
• Delivery volume in 2021 increased by 87%, with an expected annual growth of 50%.

Tesla emphasizes that despite supply chain constraints affecting production capacity, the delivery volume in 2021 still increased by 87%. It was a breakthrough year for Tesla, and there should be no more doubts about the feasibility and profitability of electric vehicles, which should be more profitable than gasoline vehicles.

No Change in Bitcoin Holdings

According to the financial report, the value of Bitcoin held in Q4 remained at $1.26 billion, the same as the previous quarter. As per generally accepted accounting principles, the value of Bitcoin in the financial report is recorded at the lowest price of the quarter, which was $46,166 on 12/17.

Previous reports indicated that Tesla's cost for Bitcoin was around $31,250, so there would be no recognition of losses.

In Q2, Tesla did not sell Bitcoin but recognized a $23 million loss. In Q3, a $51 million loss was recognized. The current holding data is as follows:

• January 2021: Purchased $1.5 billion worth of Bitcoin.
• 48,000 Bitcoins at an average price of around $31,250.
• Sold 4,800 Bitcoins in Q1, realizing $272 million and a profit of $110 million.
• Currently holding 43,200 Bitcoins, accounting for 0.206% of the total circulation.
• Ranks second in terms of holding among publicly traded companies, behind only MicroStrategy.