Tesla has confirmed they have not changed their stance on Bitcoin. The electric car manufacturer neither bought nor sold any of the cryptocurrency in Q3 2023.
This pattern has persisted for five consecutive quarters. Meanwhile, the financial performance of the company faced challenges in the same period.
A look back at Tesla's Bitcoin holdings
In February 2021, Tesla, led by Elon Musk, made headlines when they purchased $1.5 billion worth of Bitcoin, causing the cryptocurrency's price to soar.
They later sold a fraction of their holdings to gauge Bitcoin's liquidity. By the end of 2021, the company reported holding around $1.99 billion in Bitcoin.
However, in a significant move in July 2022, Tesla sold off a considerable 75% of its Bitcoin stash, accumulating an extra $936 million in its cash reserves. This meant that the company only retained roughly $218 million worth of the digital currency by the close of Q2 2022.
As of Sept. 30, Tesla's Bitcoin holdings are approximately 9,720, translating to a market value of about $275.6 million.
Tesla's financial results paint a mixed picture
The third quarter of 2023 presented some hurdles for Tesla. The company announced a top-line revenue of $23.4 billion, but it fell short of analysts' expectations.
Nonetheless, the revenue did mark a 13% increase compared to the previous year. Profitability also took a hit with the company reporting an adjusted earnings per share (EPS) of $0.66, lower than the anticipated $0.74. This reflects a significant drop of almost 37% from the previous year.
The diminished profits are likely due to anticipated pressure on margins following the company's cost-saving initiatives initiated last year.
Despite these financial setbacks, Tesla maintained its production target for 2023 at 1.8 million vehicles.
Arman Shirinyan
Godfrey Benjamin
