Tesla’s Bitcoin Assets Remain Intact Despite Large Transfer to Anonymous Wallets
Tesla has not sold its Bitcoin assets despite transferring 11,500 BTC, worth approximately $760 million, to anonymous wallets. The company’s Q3 2024 financial report confirms that Tesla’s BTC reserves remain untouched.
Tesla’s Financial Performance Excels in Q3 2024
Tesla’s financial performance in Q3 2024 has been positive, with a revenue increase of 8% to $25.2 billion and an adjusted net profit of $2.5 billion, surpassing market expectations. This performance has resulted in over a 14% increase in Tesla’s stock pre-market.
Tesla Expects Continued Growth in 2024 and 2025
Tesla projects a slight increase in vehicle deliveries and a 20-30% increase in sales for 2025. The company is focusing on reducing the costs of current vehicles and developing autonomous driving technologies, such as the ‘Cybercab’.
A Concerning $760 Million Bitcoin Transfer
Last week, Tesla alarmed investors by transferring over 11,500 BTC, around $760 million, to anonymous wallets. Rumors circulated about a potential liquidation of Tesla’s cryptocurrency holdings. However, the recently published Q3 2024 financial report confirms that Tesla has not touched its $760 million in Bitcoin.
A Turbulent Bitcoin Journey
In February 2021, Tesla made headlines by purchasing $1.5 billion worth of Bitcoin, solidifying Elon Musk as a strong supporter of cryptocurrency. At one point, Tesla held up to $2.5 billion in Bitcoin. However, in 2022, the company sold 75% of its BTC, incurring losses. Tesla’s plan to accept Bitcoin payments was also abandoned due to environmental concerns.
Tesla’s Position as a Cryptocurrency Leader
With its current $760 million Bitcoin reserves, Tesla remains the fourth-largest public Bitcoin holder in the US, following MicroStrategy, Marathon Digital, and Riot Platforms. In addition to cryptocurrency, Tesla continues to diversify its business, particularly in AI and autonomous driving. Elon Musk has recently unveiled new products and technologies, such as the ‘Cybercab’, an autonomous vehicle that is expected to revolutionize the automotive industry.
Impressive Financial Performance in Q3 2024
Tesla’s Q3 2024 financial performance has been marked by increased revenues and profits. The company reported an 8% revenue increase to $25.2 billion, slightly below analysts’ predictions of $25.4 billion. The adjusted net profit reached $2.5 billion, exceeding market expectations. Contributing factors include a 2% revenue increase from vehicle sales and significant gains in energy generation (+52%) and services, including Tesla Superchargers (+29%).
Rise in Stock Prices Despite Uncertainties
Tesla’s stocks surged over 14% in pre-market trading after the release of the financial results. This increase brings some relief to investors who have been concerned about global demand for electric vehicles. Although Tesla’s stocks are still below their peak in November 2021, the company maintains its position as the world’s most valuable automaker, with a market capitalization of nearly $670 billion.
Outlook for 2024 and 2025
Despite a slower start to the year, Tesla is anticipating slight growth in vehicle deliveries for the remainder of 2024 and a 20-30% increase in sales for 2025. Elon Musk believes that cost reduction efforts for current models and advancements in autonomous driving technology will drive demand. However, Tesla clarified that they have no plans to develop a $25,000 model, emphasizing their focus on autonomy as the future.
Elon Musk’s Controversial Political Involvement
Outside of business matters, Musk has made headlines for his open support of Donald Trump during the US presidential elections. While this support has strengthened his popularity among conservatives, it may divide his audience and create tensions with Democrats, especially if Kamala Harris wins the 2024 elections.
