In the third quarter of 2023, Tesla maintained its steady strategy and made no changes to its Bitcoin holdings. The company currently holds digital assets worth and $184 million, which are part of an initial $1.5 billion investment in Bitcoin made in March 2021. Additionally, Tesla doubled the computing power available for artificial intelligence related projects and introduced one of the largest supercomputers in the world. Although financial results for the third quarter of 2023 were below Wall Street expectations, Tesla’s shares lost 4.8 per cent in value.

• Tesla held digital assets worth $184 million  as at 30 September 2023.
• The company stated that it has more than doubled the computing power available for artificial intelligence initiatives.
• Tesla’s Q3 2023 results, which included $23.35bn of reported revenue, were below Wall Street forecasts.
• Tesla’s operating expenses in the third quarter were USD 2.41 billion, up 42.5 per cent year-on-year and a significant increase from the previous quarter.
• Tesla valued its Bitcoin assets at $1.26 billion in 2022, but ultimately sold 75% of these shares for just 936 million.

In a recent announcement regarding its stock, well-known electric vehicle manufacturer Tesla revealed that its Bitcoin wallet remains untouched. Despite the volatility in the cryptocurrency markets, this is the fifth consecutive quarter in which the company has not made any transactions.

As of 30 September 2023, Tesla held digital assets worth $184 million. These assets are part of the initial Bitcoin purchase of $1.5 billion that took place in March 2021.

What plans does Tesla have?

The latest quarterly figures reflect a consistent strategy: since a significant sale in the second quarter of 2022, which saw the company divest 75% of its assets and generate revenue of $936 million from trading over 30,000 BTC, Tesla has not made a single bitcoin purchase or sale.

However, Tesla has seen significant progress in developing capabilities and artificial intelligence. The company has announced that it has significantly increased the computing power available for its artificial intelligence projects.

Noteworthy is the increase in training data and the intensive use of artificial intelligence technology in a project related to a humanoid robot called Optimus.

In order to accelerate the development of artificial intelligence, Tesla has launched one of the largest supercomputers in the world, which has doubled its computing power since the second quarter.

Tesla’s financial results for Q3 2023 were below Wall Street expectations. The company reported US$23.35 billion in revenue, which was slightly lower than forecasts published by organisations such as Zacks Investment Research, which predicted sales of US$24.38 billion for the quarter.

Tesla’s third-quarter operating expenses were$2.41 billion, an increase of 42.5 per cent from a year ago and a significant increase from the previous quarter. Increased R&D spending in areas such as the Cybertruck project and development of artificial intelligence contributed to a 58 per cent year-on-year increase in R&D spending, which amounted to US$1.16 billion in the quarter.

According to data from Google Finance, Tesla’s share price reacted to the financial results, with the stock falling by almost 4.8% to close at US$242.68, and trading in after-hours trading down a further 4.25% toUS$232.37.

History of Tesla’s investment in Bitcoin

In 2022, Tesla valued its Bitcoin assets at $1.26 billion, but soon sold 75% of those shares for only $936 million. Despite this, the company still declared ownership of digital assets worth $222 million in its financial statements.

In February 2023, Tesla revealed that the company had incurred losses of more than $140 million as a result of investment in Bitcoin. These losses resulted from an impairment charge of $204 million and a gain of $64 million from converting Bitcoin into fiat money.

After making its first investment in Bitcoin valued at $1.5 billion in 2021, Tesla became one of the largest corporate holders of the cryptocurrency. However, Bitcoin’s price volatility resulted in a loss o $43 million in the last quarter of 2022. The passion with which Tesla approached its Bitcoin investments continues to fascinate cryptocurrency enthusiasts.