- Tesla has not made any changes to its Bitcoin holdings for the fifth consecutive quarter.
- The company holds $184 million worth of digital assets as of September 30.
- Tesla doubled its computing capacity to support its artificial intelligence (AI) projects.
- Tesla’s Q3 2023 earnings and profits fell short of Wall Street estimates.
- Operating expenses increased by over 13% compared to the previous quarter.
- Tesla’s research and development expenses jumped by 58% due to its Cybertruck, AI, and other projects.
- Tesla’s stock price experienced a decline, closing at $242.68 for the day.
Tesla, the electric vehicle maker, has not made any changes to its significant Bitcoin holdings for the fifth consecutive quarter. According to Tesla’s Q3 2023 results, released on October 18, the company held $184 million worth of digital assets as of September 30. This is part of the $1.5 billion worth of Bitcoin that Tesla initially purchased in March 2021.
Despite not buying or selling any Bitcoin, Tesla has been investing more funds in doubling its computing capacity to support its artificial intelligence (AI) initiatives. The company reported that it has “more than doubled the size” of its computing power for its AI projects. This increase is attributed to the growing training data set and the transition of training its humanoid robot Optimus to AI rather than coded software.
However, Tesla’s third-quarter earnings and profits fell short of Wall Street estimates. The company reported total revenues of $23.35 billion, which was an increase of nearly 9% compared to the previous year but missed Zacks Investment Research’s estimate of $24.38 billion. Tesla also missed projected profits, reporting earnings per share (EPS) of $0.66 compared to Zack’s $0.72 EPS estimate.
Additionally, Tesla’s operating expenses for the third quarter came in at $2.41 billion, marking an increase of over 13% from the previous quarter and over 42.5% from the same period last year. The company’s research and development expenses were $1.16 billion, a 58% increase from the previous year. Tesla attributed these increases to its “Cybertruck, AI, and other R&D projects.”
As a result of the lower-than-expected performance, Tesla’s stock price experienced a decline. It closed at $242.68 for the day and fell a further 4.25% in after-hours trading to $232.37, according to Google Finance data.
Overall, Tesla’s Bitcoin holdings remain untouched while the company focuses on expanding its AI capabilities. However, its financial results fell short of expectations, leading to a decline in its stock price.