Tesla is an electric car company led by Elon Musk. According to its latest announcement, it maintains its position on the Bitcoin crypto in the third quarter of 2023. It therefore decides to keep its stock of 9,720 BTC. This decision comes despite financial results down slightly compared to the previous year, although the company’s turnover has increased.
Bitcoin and Tesla: unchanged crypto strategy
In February 2021, Tesla had invested $1.5 billion in bitcoin. This represents approximately 43,000 crypto tokens. The company had also announced that it would accept bitcoin as payment for its products.
Tesla, however, quickly changed course by reselling part of its BTC holdings. A decision explained by the fact that the company is concerned about environmental issues linked to the energy consumption of the Bitcoin network. It therefore liquidated 75% of its remaining crypto balance at a loss in 2022.
At the end of this third quarter of 2023, Tesla’s bitcoin holdings are valued at approximately $275.6 million. This is an amount calculated at the current BTC price of $28,300.
Financial challenge and resilience of Tesla
For Tesla, the third quarter 2023 turns out to be particularly rich in obstacles. And this is not just about crypto Bitcoin. Certainly, the company presents a turnover of 23.4 billion dollars. But it is slightly lower than analysts’ expectations, which hovered around $24.06 billion.
That’s not all ! Despite a 13% increase in turnover compared to the previous year, Tesla’s profitability has also fallen. It posted adjusted earnings per share of $0.66, below the $0.74 forecast. A drop in profits which can be attributed to pressure on margins due to cost-saving initiatives launched by the company the previous year.
YES ! Tesla is now considered the third largest public company holding Bitcoin holdings (behind MicroStrategy and Marathon Digital Holdings). However, it does not seem to have any intention of adjusting its position in cryptocurrency in the short term. Its past choices and current financial challenges therefore raise questions about the direction the company will take in the field of crypto assets.
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