Tesla, synonymous with electric vehicles and clean energy, caught the market’s attention with its Q3 2023 financial update. Significantly, the company did not alter its $312 million Bitcoin holdings this quarter. Moreover, this marks another period of no sales for Tesla’s Bitcoin assets, which have seen a decrease of $9 million since Q2 this year. The electric automotive giant had made a sizable investment in Bitcoin, purchasing $1.5 billion worth in early 2021. However, the company sold approximately 75% of its holdings in Q2 2022 for a substantial $936 million. Since that time, Tesla has neither bought nor sold any Bitcoin.
Mixed financial performance
In addition to its untouched Bitcoin portfolio, Tesla disclosed a revenue of $23.35 billion for the third quarter. This number falls short of projections, which estimated the company’s revenue to be around $23.9 billion. Tesla’s stock felt the impact, showing a 4.78% decline and closing at $242.68 per share. Additionally, the company reported adjusted earnings per share at 66 cents, which also missed the mark set by estimates of 73 cents per share.
Another point of interest was Tesla’s gross profit margin for the quarter. It stood at 17.9%, which is slightly below the estimated 18%. Earlier this month, Tesla had reported a 7% decline in vehicle deliveries for the third quarter, compared to the previous three months. Despite this, the company reiterated its target of 1.8 million vehicle deliveries for the entire year of 2023. Consequently, Tesla has made adjustments to its pricing strategy. The company reduced the prices of some electric vehicle models both in the U.S. and internationally. Tesla also cut the price of its Full Self-Driving (FSD) option, or FSD Beta, its premium driver assistance software.
It’s worth noting that Tesla utilizes an online platform called Say Technologies to field questions from shareholders prior to releasing earnings reports. This platform plays a crucial role in shaping the dialogue between the company and its investors. As part of its Q3 update, Tesla also revealed that the pilot production of its much-anticipated CYBERTRUCK has already surpassed 125,000 units, well ahead of the planned November product launch.
In summary, Tesla’s third-quarter financials presented a mixed bag of results. While the company showed no change in its Bitcoin portfolio, other financial indicators like revenue and stock prices experienced some fluctuations. The market will surely keep an eye on Tesla’s moves in the coming months, as the company adjusts its strategies to meet its ambitious targets.