Tesla (TSLA) Sold Most of Its Bitcoin Holdings During ‘Crypto Winter'
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The company run by CEO Elon Musk was a trailblazer when it bought $1.5 billion of Bitcoin in 2021. But unfortunately, Tesla sold three-quarters (75%) of its holdings in 2022 as the market for digital assets was tanking and BTC was trading around $16,000.
Bitcoin has since rebounded in a big way, jumping 80% higher in the past year to currently trade at $116,000. This means that Tesla has lost out on billions of dollars in potential gains, missing a huge market opportunity.
Current Holdings
In its latest earnings release, dated July 23, Tesla said its current cryptocurrency holdings stand at $1.24 billion, up 72% from $722 million a year ago, mostly due to Bitcoin's strong rally that has taken its price to an all-time high of just over $123,000 in recent weeks.
Although Musk is focused on developing electric vehicles, self-driving robotaxis, and humanoid robots rather than cryptocurrencies, there's no denying that Tesla lost out when it sold most of its BTC at a market low. The company's business, which is struggling with poor electric vehicle sales and a consumer backlash against Musk's politics, could use the cash boost from crypto.
Is TSLA Stock a Buy?
The stock of Tesla has a consensus Hold rating among 35 Wall Street analysts. That rating is based on 14 Buy, 14 Hold, and seven Sell recommendations issued in the last three months. The average TSLA price target of $314.48 implies 0.36% downside from current levels.
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