Tesla Holds Bitcoin Investment for Fifth Consecutive Quarter

Elon Musk's electric vehicle company, Tesla, continues to maintain its Bitcoin holdings without any buying or selling activities for the past five quarters.

Tesla Holds Bitcoin Investment for Fifth Consecutive Quarter. Photo: CNBC

As of September 30, 2023, Tesla holds 9,720 Bitcoins valued at $184 million, unchanged from the second quarter of 2023. The company's third-quarter financial report, recently released, did not mention Bitcoin, indicating no transactions involving the asset in the past three months.

Despite not increasing its Bitcoin holdings over the past five consecutive quarters, Tesla's cryptocurrency holdings have significantly declined from its initial ambitious targets, influenced by the company's financial performance.

Tesla's Business Performance in Q3 2023:

The revenue for the last quarter was $23.4 billion, a 6% decrease from $24.9 billion in Q2 2023. The automotive segment remained the company's primary revenue source in both consecutive financial reports. Additionally, earnings per share adjusted from an estimated $0.73 to $0.66. This marks Tesla's first market disappointment since Q2 2019.

Tesla began its $1.5 billion Bitcoin investment in 2021, becoming one of the largest holders of Bitcoin globally (second only to MicroStrategy). At its peak, this Bitcoin holding was valued at over $2 billion. Notably, Tesla also started accepting Bitcoin as payment for vehicles and other products during that time.

However, the company largely liquidated its Bitcoin holdings in 2022, retaining only $218 million by the end of September 2022. Overall, Tesla reported a net loss of $140 million last year due to its Bitcoin investment.

Looking ahead, Tesla sets its sights on expanding its electric vehicle and energy business, with a significant focus on artificial intelligence. Elon Musk commented cautiously:

"I'm concerned about the high-interest-rate environment. If interest rates remain high or go higher, it's going to be very difficult for people to buy cars because they're still paying off their debts every month. Going forward, the company will focus on cost-cutting to bring more affordable products to market."

Tesla's stock (TSLA) dropped nearly 5% immediately after the financial report was released.

Chart: Tesla's TSLA Stock Price Movement on D. Source: TradingView