Tesla earnings: Bitcoin bags untouched as firm splashes out on AI

Electric automobile maker Tesla made no changes to its sizeable Bitcoin (BTC) holdings– the 5th quarter in a row– though it has directed more funds to double its computing capacity in the middle of synthetic intelligence efforts.Teslas Q3 2023 results released on Oct. 18 program as of Sept. 30, it held $184 million worth of digital possessions– a part of the $1.5 billion worth of Bitcoin it first bought in March 2021. The most recent quarterly results imply it hasnt purchased or sold any Bitcoin because its sell-off of around 75% of its holdings in Q2 2022 when it fetched $936 million for more than 30,000 BTC.Excerpt of Teslas Q3 2023 balance sheet with its digital possession holdings highlighted. Source: TeslaOn the other hand, Tesla reported it had “more than doubled the size” of its computing power for its AI tasks, citing a growing training information set and changing the training of its humanoid robot Optimus to AI instead of coded software.” We have commissioned one of the worlds biggest supercomputers to speed up the pace of our AI development, with compute capability more than doubling compared to Q2.” Tesla saw its third-quarter earnings and revenues miss Wall Street price quotes, with reported overall revenues of $23.35 billion. While this was up by nearly 9% from the prior-year period, it missed out on Zacks Investment Researchs price quote of $24.38 billion.It also missed out on predicted earnings, with reported profits per share (EPS) of $0.66 compared to Zacks $0.72 EPS estimate.Total third-quarter business expenses can be found in at $2.41 billion, marking more than a 13% increase from last quarter and over a 42.5% boost from the previous year.Related: Bitcoin tidy energy usage apparently surpasses 50%– Will Tesla begin accepting BTC payments?Teslas research and development expenses were $1.16 billion in the quarter, a 58% dive from in 2015. It associated the increases to its “Cybertruck, AI and other R&D tasks.” Tesla (TSLA) shares continued to fall after the bell to a low of $230.19. Source: Google FinanceTesla shares were down nearly 4.8% on the day, closing at $242.68 and fell a further 4.25% in after-hours trading to $232.37 per Google Finance data.Magazine: NFT Collector: Creative AI art, Tomorrowland sells tomorrows future

Other Questions People Ask

What were Tesla's earnings related to Bitcoin holdings in Q3 2023?

In Q3 2023, Tesla reported that it maintained its Bitcoin holdings at $184 million, marking the fifth consecutive quarter without any changes. The company has not purchased or sold any Bitcoin since it offloaded approximately 75% of its holdings in Q2 2022. This decision reflects Tesla's strategy to keep its digital asset investments stable while focusing on other areas of growth.

How is Tesla investing in AI despite its unchanged Bitcoin bags?

Despite keeping its Bitcoin holdings untouched, Tesla has significantly increased its investment in artificial intelligence. The company announced that it has more than doubled its computing power for AI projects, which includes enhancing the training of its humanoid robot, Optimus. This strategic shift indicates Tesla's commitment to advancing its AI capabilities while maintaining its existing cryptocurrency assets.

What impact did Tesla's Q3 earnings have on its stock price?

Tesla's Q3 earnings report revealed a revenue of $23.35 billion, which fell short of Wall Street expectations, leading to a decline in its stock price. Following the announcement, Tesla shares dropped nearly 4.8% during regular trading and continued to fall in after-hours trading. This reaction underscores the market's sensitivity to Tesla's financial performance and future outlook, particularly in light of its substantial investments in AI.

What are the implications of Tesla's unchanged Bitcoin strategy on its financial health?

Tesla's decision to keep its Bitcoin holdings intact suggests a cautious approach to managing its digital assets amidst fluctuating market conditions. By not engaging in further buying or selling, Tesla may be prioritizing stability over potential short-term gains from Bitcoin trading. This strategy allows the company to focus on its core operations and significant investments in AI development, which could enhance long-term financial health.

How does Tesla's R&D spending relate to its AI initiatives and Bitcoin holdings?

Tesla reported a notable increase in research and development expenses, totaling $1.16 billion for the quarter, primarily driven by projects related to AI and the Cybertruck. This investment reflects the company's strategic pivot towards enhancing its technological capabilities while maintaining its Bitcoin assets. By allocating resources to AI, Tesla aims to innovate and improve efficiency, potentially offsetting any risks associated with holding onto its cryptocurrency investments.