Tesla’s Bitcoin Holdings Remain Steady in Q4 2023
Although Tesla didn’t mention Bitcoin in its latest earnings report, analysts have determined that the company’s Bitcoin holdings remained unchanged in the last quarter of 2023. According to Bitcoin Treasuries, Tesla holds over 9,720 BTC, valued at approximately $387 million at current prices. This makes Tesla the third company with the largest BTC treasury, behind MicroStrategy and Marathon Holdings.
Tesla’s Earnings Report Met with Share Drop
Tesla’s recent earnings report resulted in a 14% drop in shares due to weak auto revenue and predictions of slower growth in 2024. While the report showed a marginal increase in total revenue compared to the previous year, it also highlighted a dip in operating margin to 8.2%. These challenges faced by the automaker were not well-received by investors.
Net Income Doubles Despite Setbacks
Despite setbacks, Tesla’s net income more than doubled in the quarter, primarily due to a significant noncash tax benefit. Looking ahead, the company is focused on launching its “next-generation vehicle” in Texas, which may impact its vehicle volume growth for 2024.
Musk’s Desire for Dual-Class Share Structure
During the earnings call, Elon Musk expressed his desire to own 25% of Tesla and indicated an interest in a potential shift towards a dual-class share structure. He cited challenges with institutional shareholder services and activist organizations infiltrating these institutions. Musk emphasized his goal of being an effective steward of powerful technology rather than seeking additional economics.
Tesla’s Pivot Towards AI and Robotics
Tesla’s venture into AI and robotics includes the launch of x.AI and the development of the humanoid robot Optimus. Musk believes that Optimus has the potential to surpass the value of everything else combined for Tesla. Additionally, the introduction of the Cybertruck is a significant milestone for the company, with an estimated capacity to produce over 125,000 vehicles annually.
Tesla’s BTC Stash in Q2 2022
In Q2 2022, Tesla sold 75% of its BTC holdings for $936 million. If the company had held onto its Bitcoin and sold it after April 28, it would have more money today than it received from the sales two years ago.
Hot Take: Tesla’s Bitcoin Holdings Hold Steady Despite Earnings Report Setbacks
Tesla’s latest earnings report may have disappointed investors with weak auto revenue and predictions of slower growth. However, the company’s Bitcoin holdings remained steady in Q4 2023, positioning Tesla as one of the top companies with a significant BTC treasury. Despite challenges, Tesla’s net income doubled, and the focus is now on launching their “next-generation vehicle” and expanding into AI and robotics. Elon Musk’s desire for a dual-class share structure reflects ongoing tensions between corporate leadership and shareholder advisory boards. Overall, Tesla continues to make strategic moves in different sectors while holding on to its cryptocurrency assets.
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