Tesla, the prominent electric vehicle manufacturer, has revealed in its Q3 2023 results that it has made no changes to its significant Bitcoin holdings for the fifth consecutive quarter. However, the company has directed additional funds towards increasing its computing capacity, primarily to support its efforts in artificial intelligence.
As of September 30, Tesla held approximately $184 million worth of digital assets, which is a portion of the $1.5 billion worth of Bitcoin it initially purchased in March 2021. The company has not bought or sold any Bitcoin since it sold off around 75% of its holdings in Q2 2022, generating $936 million from the sale of over 30,000 BTC.
While Tesla has maintained its Bitcoin holdings, it has focused on enhancing its computing power for its AI projects. The company reported that it has more than doubled the size of its computing capacity, attributing this increase to a growing training data set and shifting the training of its humanoid robot, Optimus, from coded software to AI. Tesla has commissioned one of the world’s largest supercomputers to accelerate its AI development.
Despite these developments, Tesla’s Q3 earnings and profits fell short of Wall Street estimates. The company reported total revenues of $23.35 billion, a nearly 9% increase from the previous year but lower than Zacks Investment Research’s estimate of $24.38 billion. Tesla’s reported earnings per share (EPS) of $0.66 also fell short of Zack’s estimate of $0.72 EPS.
Furthermore, Tesla’s operating expenses for the third quarter amounted to $2.41 billion, marking a 13% increase from the previous quarter and a 42.5% increase from the previous year. The company’s research and development expenses also soared by 58% to $1.16 billion, mainly due to investments in projects such as the Cybertruck, AI, and other R&D initiatives.
Following the release of these results, Tesla’s shares dropped by nearly 4.8% during regular trading hours, closing at $242.68. In after-hours trading, the stock fell by an additional 4.25% to $232.37.
It remains to be seen how Tesla’s Bitcoin holdings will evolve in the future and whether the company will make any adjustments to its investment strategy in the cryptocurrency. Meanwhile, its increased computing capacity for AI projects showcases the firm’s commitment to advancing technology and innovation in this field.