BTC Holdings Unchanged Amid Financial Challenges

Tesla has maintained its Bitcoin holdings at $312 million, according to its Q3 2023 financial update.

This decision marks a continuation of the status quo established after the company’s significant sell-off of Bitcoin in Q2 2022, when it liquidated approximately 75% of its holdings for $936 million. Notably, in the third quarter of 2023, Tesla’s Bitcoin holdings decreased in value by approximately $9 million compared to the previous quarter.

In terms of financial performance, Tesla fell short of market expectations. Following the release of its Q3 financial results, the company’s stock price declined by 4.78%, settling at $242.68 per share.

Despite maintaining its Bitcoin holdings, Tesla reported a revenue of $23.35 billion, which was below the projected $23.9 billion. Additionally, the company disclosed adjusted earnings of 66 cents per share, missing the forecasted 73 cents. The gross profit margin for Q3 also slightly underperformed, coming in at 17.9% instead of the estimated 18%.

Report Summary

Earnings: 66 cents per share

Expected earnings: 73 cents per share

Revenue: $23.35 billion

Expected earnings: $24.1 billion

This is the first time Tesla has missed both earnings and revenue sinces it’s Q2 2023 report in July 2019.

Alongside these financial figures, Tesla shared other noteworthy updates in its Q3 report.

One significant announcement was regarding its CYBERTRUCK, which is set to launch in November. The company revealed that the pilot production of the CYBERTRUCK has already surpassed 125,000 units.

In addition to CYBERTRUCK updates, Tesla implemented pricing changes for certain vehicle models and its Full Self-Driving (FSD) software.

The company lowered the prices of some electric vehicle models in both the U.S. and international markets.

These changes follow a 7% decline in vehicle deliveries for Q3 compared to the previous quarter. Nevertheless, Tesla still aims to achieve its target of 1.8 million vehicle deliveries for the full year of 2023.

The unchanged Bitcoin holdings by Tesla, combined with these pricing adjustments, suggest a more cautious approach amid market uncertainties.

Tesla’s prudence in managing its digital assets and its approach to vehicle production and sales is garnering attention from market watchers, investors, and consumers.

The company’s next moves in the final quarter of the year are eagerly awaited as it navigates the ever-evolving landscape of both the cryptocurrency and electric vehicle industries.

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