What Price Does Bitcoin Need To Hit For Tesla To Break Even On Initial $1.5B Investment? (CORRECTED)

Note: This was updated with corrections at 12:10 PM EST.

Elon Musk's Electric vehicle powerhouse Tesla Inc's TSLA Bitcoin BTC/USD stash stands at 9,720 units after making sizable sales in early 2021 and mid-2022.

What Happened: Tesla invested $1.5 billion into Bitcoin in early 2021, acquiring 43,200 BTC at an average price of approximately $34,722 per coin. Not long after, by March 2021, Tesla cashed in on Bitcoin’s surge, selling 10% of their holdings — precisely 4,320 BTC — at a whopping $58,669 each. The sale netted them a profit of over $103 million.

However, the tide turned by mid-2022. Prices had dropped, and Tesla decided to sell a larger batch of 29,160 BTC at just $20,109 per coin, incurring a loss of about $426 million from the cost basis.

Recent numbers crunched from Tesla's fourth quarterly earnings indicate no fresh crypto transactions.

Now, Tesla holds 9,720 BTC. At the current $40,000 price, these are worth nearly $388.8 million. But to break even after the initial $1.5 billion investment, taking into account both the profit and the loss from past sales, Tesla needs each Bitcoin to be worth approximately $67,922.

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Why It Matters: Tesla ranks fourth among publicly traded companies with the most significant Bitcoin portfolios, trailing behind Michael Saylor's MicroStrategy, Galaxy Digital Holdings and Marathon Digital Holdings, as per data from Coingecko.

 In other financial news, Tesla disclosed a fourth-quarter revenue of $25.17 billion, marking a 3% increase year-over-year but falling short of the anticipated $25.62 billion. The automotive revenue reached $21.56 billion, showing a 1% growth from the previous year.

Despite the revenue increase, Tesla's earnings per share stood at 71 cents, narrowly missing analyst consensus estimates of 74 cents per share.

Price Action: At the time of writing, Bitcoin was trading at $40,060 up 0.52% in the last 24 hours, according to Benzinga Pro. Tesla shares are down 3% to $201.95 in after-hours trading Wednesday versus a 52-week trading range of $138.07 to $299.29. Tesla shares are up 44% over the last year as of Wednesday's close.

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