Tesla Reports Earnings: Bitcoin Holdings Unchanged as Company Invests in AI Technology

In its recently released Q3 2023 results, electric vehicle giant Tesla stood firm on its Bitcoin holdings, maintaining its position for the fifth consecutive quarter. As of September 30, the company’s Bitcoin assets remained at $184 million, constituting a part of the $1.5 billion in Bitcoin it initially purchased in March 2021. Despite fluctuations in the crypto market, Tesla refrained from making any buys or sells, sticking to its strategy even after a substantial sell-off in Q2 2022, where it sold over 30,000 BTC, fetching $936 million.

Interestingly, while Tesla remained conservative in its crypto moves, it made significant strides in the realm of artificial intelligence. The company revealed it had significantly increased its computing power, citing the expansion of its training data set and a shift in training methods for its humanoid robot Optimus from coded software to AI algorithms.

Tesla’s commitment to advancing its AI initiatives was evident as it disclosed, “We have commissioned one of the world’s largest supercomputers to accelerate the pace of our AI development, with compute capacity more than doubling compared to Q2.”

However, Tesla’s financial performance in Q3 2023 didn’t entirely align with market expectations. The company’s total revenues for the quarter amounted to $23.35 billion, a commendable 9% increase from the previous year. Despite this growth, it fell short of Zacks Investment Research’s estimated figure of $24.38 billion. Tesla also missed the mark on projected profits, reporting earnings per share (EPS) of $0.66 compared to the estimated $0.72 EPS by Zacks.

Operating expenses in Q3 2023 stood at $2.41 billion, marking a notable 13% increase from the previous quarter and a significant 42.5% surge from the previous year. Tesla attributed these rises to its ongoing investments in projects such as the Cybertruck, AI development, and other research and development initiatives.

Market response to Tesla’s financials was mixed. On the day of the announcement, Tesla’s shares experienced a nearly 4.8% drop, closing at $242.68. After hours, the decline continued, with shares falling an additional 4.25% to $232.37, according to Google Finance data. Despite the market fluctuations, Tesla’s unwavering stance on its Bitcoin holdings and its robust investments in AI technologies underscore its strategic positioning amid the evolving landscape of technology and finance.

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