Tesla continues to maintain a substantial investment in Bitcoin, holding 11,509 BTC valued at approximately $1.35 billion as of the end of the third quarter. This investment has proven beneficial, as an uptick in Bitcoin’s value during the quarter translated into an $80 million gain for the company. While this gain reflects positively on Tesla’s financials, the overall valuation of its Bitcoin holdings has seen a decline since that time.
In terms of financial performance, Tesla reported third-quarter revenue totaling $28.1 billion, significantly exceeding analyst expectations of $26.36 billion. This strong revenue growth underlines the company’s robust operational capabilities in the electric vehicle market. However, adjusted earnings per share (EPS) came in at $0.50, which fell short of forecasts that anticipated an EPS of $0.54.
Tesla’s financials reveal an adjusted EBITDA of $4.3 billion for the quarter, highlighting a solid profit margin. Moreover, the company reported a substantial cash and equivalents balance of $41.6 billion, reflecting its strong liquidity position.
The recent changes in accounting standards imposed by the Financial Accounting Standards Board (FASB) now require Tesla to recognize gains or losses from its Bitcoin holdings on a quarterly basis. This change represents a shift from previous regulations, which mandated that firms record their digital asset holdings at the lowest value during the reporting period, potentially providing a more accurate representation of current market conditions.
In after-hours trading, shares of Tesla (TSLA) experienced a slight decline, dropping to around $434, signaling a cautious market response following the earnings report.
