Tesla Holds Bitcoin Amid AI Investment
Electric vehicle manufacturer Tesla has maintained its significant Bitcoin holdings for the fifth consecutive quarter, according to its Q3 2023 results. As of September 30, Tesla held $184 million worth of digital assets, which is part of the $1.5 billion worth of Bitcoin it acquired in March 2021. The company has neither bought nor sold any Bitcoin since it sold off 75% of its holdings in Q2 2022, generating $936 million. Despite this, Tesla has increased its computing capacity to support its artificial intelligence (AI) initiatives.
Growing AI Efforts and Supercomputer
Tesla has reported that it has more than doubled the size of its computing power for AI projects. This expansion is attributed to a larger training data set and the shift of training for its humanoid robot Optimus from coded software to AI. The company stated that it has commissioned one of the world’s largest supercomputers to accelerate AI development, with compute capacity doubling compared to Q2.
Missed Earnings Estimates
Tesla’s third-quarter earnings and profits fell short of Wall Street estimates. The company reported total revenues of $23.35 billion, an increase of nearly 9% from the previous year but lower than Zacks Investment Research’s estimate of $24.38 billion. Furthermore, Tesla’s reported earnings per share (EPS) was $0.66 compared to Zack’s estimate of $0.72 EPS.
Increased Operating Expenses
Tesla’s total operating expenses for Q3 reached $2.41 billion, marking a more than 13% increase from the previous quarter and over a 42.5% increase from the prior year. The company’s research and development expenses also rose by 58% to $1.16 billion, which Tesla attributed to its Cybertruck, AI, and other R&D projects.
Stock Performance
Tesla’s shares dropped nearly 4.8% during the day, closing at $242.68. In after-hours trading, the stock fell an additional 4.25% to $232.37 per Google Finance data.
Hot Take: Tesla Remains Committed to Bitcoin as AI Investments Expand
Tesla’s Q3 2023 results reveal the company’s continued holding of Bitcoin, with no recent buying or selling activity. However, Tesla’s focus has shifted towards expanding its computing capacity to support its AI initiatives. The company has more than doubled its computing power and commissioned a significant supercomputer for AI development. Despite missing earnings estimates and experiencing increased operating expenses, Tesla remains committed to technological innovation and research in fields like AI and electric vehicles.
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