Tesla Retains Bitcoin Holdings, Ramps Up AI Investments Despite Missed Q3 Expectations
Summary:
Tesla has kept its substantial Bitcoin holdings untouched for the fifth straight quarter, as per the Q3 2023 financial results. Meanwhile, the company has invested more to boost computing power for its AI initiatives. Tesla reported total revenues of $23.35 billion in Q3, missing Wall Street expectations. Operating expenses and R&D costs have surged due to various projects, including Cybertruck and AI development. Tesla's shares (TSLA) experienced a drop, closing at $242.68.
In the fifth consecutive quarter, Tesla, the electric vehicle manufacturer, maintains its substantial Bitcoin (BTC) investment untouched. However, the company has increased investments to boost its computing power capabilities, primarily for its artificial intelligence initiatives. As per Tesla's Q3 2023 financial results, released on October 18, the company held digital assets worth $184 million as of September 30. This amount is a fraction of the $1.5 billion in Bitcoin Tesla initially procured in March 2021. Since its substantial Bitcoin sell-off, around 75% of its portfolio in Q2 2022, generating $936 million from over 30,000 BTC, Tesla has neither purchased nor sold any Bitcoin.
Meanwhile, Tesla confirmed that it had "significantly expanded" its computing capacity for AI developments, attributing this to an increasing training data base and the transition from coded software to AI for training its humanoid robot, Optimus. The company stated, "to expedite our AI development pace, we have established one of the largest supercomputers globally, with computing capacity more than double since Q2."
Tesla's Q3 earnings and profits fell short of Wall Street's forecasts, generating total revenues of $23.35 billion. While this reflects a nearly 9% increase compared to last year, it did not meet Zacks Investment Research's projection of $24.38 billion. The company's earnings per share (EPS) of $0.66 also failed to hit Zacks' estimate of $0.72 per share.
Moreover, Q3 operating costs totaled $2.41 billion, representing a more than 13% rise from the previous quarter and a substantial 42.5% jump on a year-on-year basis. Tesla saw its research and development expenses rise by 58% from last year, amounting to $1.16 billion due to increased investment in "Cybertruck, AI, and other R&D projects."
Tesla's shares (TSLA) were down approximately 4.8% on the day, closing at $242.68, and continued to fall by an additional 4.25% in after-hours trading, dropping to $232.37, as per Google Finance data.
From a creative AI art perspective, NFT Collector magazine highlights the sale of Tomorrowland's futuristic offerings.
Published At
10/19/2023 1:12:11 AM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.