Tesla’s BTC Holdings Stay Put In Q3

Table of Contents

• Tesla's Bitcoin Holdings Remain Unchanged
• Financial Performance and Stock Market Reaction
• Conservative Approach Amid Uncertainties

Elon Musk-owned automotive company Tesla revealed that it has managed to hold on to all its Bitcoin even through the financial turmoil of the third quarter of 2023. 

Tesla's Bitcoin Holdings Remain Unchanged

In the midst of a turbulent third quarter of 2023, Tesla, the electric vehicle and clean energy giant led by Elon Musk, has successfully held onto its Bitcoin holdings, maintaining a conservative financial approach.

At its Q3 update, Tesla announced that it retained its entire Bitcoin portfolio, valued at $312,000,000, marking the company’s fifth consecutive quarter without any sales. The Bitcoin stash did dip by $9,000,000 in comparison to the previous quarter. 

Notably, Tesla refrained from any Bitcoin transactions since its substantial sale of over 30,000 BTC, approximately 75% of its holdings, in Q2 2022, which generated $936 million. The company had initially invested $1.5 billion in Bitcoin in early 2021.

Financial Performance and Stock Market Reaction

While Tesla remained unwavering in its Bitcoin stance, its financial performance faced some challenges. The company reported adjusted earnings of 66 cents per share, falling short of the projected 73 cents. Moreover, Tesla's revenue amounted to $23.35 billion, which didn't meet the expected $23.9 billion. The gross profit margin for Q3 landed at 17.9%, slightly below the estimated 18%. Following the earnings announcement, Tesla's shares declined by 4.78%, reaching a value of $242.68 per share.

During the shareholder presentation, Tesla also disclosed that its CYBERTRUCK pilot production had already exceeded 125,000 units ahead of the planned November product launch. Even though the company reported a 7% decline in vehicle deliveries in this quarter, it is still hopeful about hitting its yearly target of delivering 1.8 million vehicles. 

Conservative Approach Amid Uncertainties

Tesla's decision to maintain its Bitcoin holdings amid a volatile market suggests a more cautious approach to financial management. This prudence extends to various aspects of the company's operations, from digital assets to vehicle production and sales. The move echoes Tesla's regular practice of using Say Technologies, an online platform that collects shareholder questions to generate earnings reports.

As Tesla continues to navigate the financial landscape and hold its Bitcoin assets, market observers, investors, and consumers are keen to see how the company will proceed in the final quarter of the year. Tesla's strategy of conserving resources amidst uncertainties positions it at the center of attention, with many awaiting its next moves.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.