Tesla, led by entrepreneur Elon Musk, revealed that it didn’t part ways with any of its $312 million worth of Bitcoin (BTC) in the third quarter of 2023. Moreover, the company’s pile of Bitcoin lost approximately $9 million in value compared to the second quarter of this year.
The last significant move Tesla made with its Bitcoin holdings was in the second quarter of 2022, when it liquidated around 75% of its holdings for $936 million. The automaker initially invested $1.5 billion in Bitcoin in early 2021.
Tesla’s financials
After the stock market closed, Tesla shares dropped 4.78%, landing at a value of $242.68 per share. Despite holding its ground on Bitcoin, Tesla didn’t meet some key financial expectations. The company reported a revenue of $23.35 billion, falling short of the projected $23.9 billion. Additionally, Tesla disclosed adjusted earnings of 66 cents per share, missing the forecasted 73 cents. Tesla’s gross profit margin for Q3 also took a slight hit, coming in at 17.9% instead of the estimated 18%.
Tesla also shared other noteworthy updates in its Q3 report. Ahead of its planned November launch, the CYBERTRUCK pilot production has already exceeded 125,000 units. Furthermore, the automaker reduced prices on some electric vehicle models both in the U.S. and internationally. Tesla also dropped the price of its Full Self-Driving (FSD) Beta software. The changes come after Tesla reported a 7% decline in vehicle deliveries for Q3 compared to the previous quarter. However, the company still aims to reach its target of 1.8 million vehicle deliveries for the full year of 2023.
This mixed financial performance follows Tesla’s routine of using Say Technologies, an online platform, to gather shareholder questions before revealing earnings reports. These revelations arrive at a time when Tesla has reduced the prices for its premium driver assistance software and some vehicle models in multiple markets.
The unchanged Bitcoin holdings by Tesla may reflect a more conservative approach amid market uncertainties. While not explicitly stated, the automaker’s actions suggest a strategy of financial prudence on multiple fronts, from digital assets to vehicle production and sales. Consequently, all eyes are on Tesla as market watchers, investors, and consumers alike await the company’s next steps in the final quarter of the year.
