In the third quarter of 2023, Tesla made a noteworthy financial move by retaining its substantial Bitcoin holdings while simultaneously increasing its investments in artificial intelligence and research and development. This strategic balance was revealed in Tesla’s Q3 2023 results released on October 18.
Tesla’s Bitcoin holdings remained unaltered, holding onto $184 million worth of digital assets, which is a fraction of the $1.5 billion worth of Bitcoin it initially acquired in March 2021.
Remarkably, this marked the fifth consecutive quarter in which Tesla refrained from buying or selling any Bitcoin. This decision came after a significant Bitcoin sell-off in Q2 2022, during which Tesla divested approximately 75% of its holdings, fetching a substantial $936 million from the sale of over 30,000 BTC.
Conversely, Tesla allocated more financial resources toward expanding its computing capacity to bolster its artificial intelligence initiatives. The company disclosed that it had “more than doubled the size” of its computing power for AI projects.
This expansion was attributed to the increasing demands of training data and a shift in training methodology for its humanoid robot, Optimus, which transitioned from coded software to AI-driven training.
Tesla’s commitment to accelerating its AI development was underscored by the commissioning of one of the world’s largest supercomputers. This move effectively doubled the company’s compute capacity compared to the previous quarter.
However, Tesla’s Q3 earnings report showed that its financial performance fell short of Wall Street estimates. The company reported total revenues of $23.35 billion, reflecting a nearly 9% increase from the same period the previous year but missing Zacks Investment Research’s estimated revenue of $24.38 billion.
Additionally, Tesla failed to meet earnings expectations, reporting earnings per share (EPS) of $0.66, compared to Zacks’ projected $0.72 EPS. Operating expenses for the third quarter totaled $2.41 billion, marking an increase of more than 13% compared to the previous quarter and over 42.5% from the prior year. Tesla attributed these rising costs to investments in its “Cybertruck, AI, and other R&D projects.”
In summary, Tesla’s Q3 2023 financial results showcased the company’s unwavering commitment to both its Bitcoin holdings and its aggressive pursuit of advancements in artificial intelligence and research and development. This dual strategy aims to position Tesla at the forefront of the electric vehicle and AI industries.