Tesla maintains steady Bitcoin holdings, Q3 report shows

Tesla (NASDAQ:TSLA)’s Q3 earnings report, released on Thursday, revealed a consistent Bitcoin balance of approximately 9,720 BTC or $275.6 million. The company has maintained this steady cryptocurrency reserve for the fifth consecutive quarter without any indications of conversion to fiat currencies or active selling efforts.

In early 2021, Tesla made an initial investment of $1.5 billion in Bitcoin under CEO Elon Musk’s leadership. The company accumulated around 43,000 Bitcoin units at an average rate of $34,000 and signaled its intention to accept the cryptocurrency as payment for its products.

In a surprising move later that year, Tesla reversed its plan and sold 4,320 BTC due to environmental concerns associated with Bitcoin mining. This decision triggered a market value drop and inflicted a $101 million impairment loss on the company.

By Q2 2022, amid China’s COVID lockdowns, Tesla had divested 75% of its Bitcoin holdings. Tesla currently ranks third in Bitcoin holdings among public companies, trailing behind MicroStrategy and Marathon Digital (NASDAQ:MARA) Holdings, even after these significant liquidations.

The Q3 report also highlighted a net income of $1.85 billion for the July-September quarter. This marks a significant decline of 44% compared to the same period last year, with earnings per share dropping to 53 cents.

In light of the recent report, InvestingPro data reveals that Tesla’s adjusted market cap stands at a staggering $770.26 billion. The company’s P/E ratio is at 62.71, with a PEG ratio of 2.55 for Q2 2023, indicating the high growth potential of Tesla relative to its current earnings. The revenue for Q2 2023 was a considerable $94.03 billion, showing a growth of 39.99% from the previous year.

InvestingPro Tips indicate that Tesla yields a high return on invested capital and holds more cash than debt on its balance sheet. However, it’s worth noting that the stock price movements can be quite volatile. This information and more is available to subscribers of InvestingPro, which provides real-time metrics and tips on various companies. For more information and other valuable investing tips, visit InvestingPro.