Elon Musk’s Tesla Still Holds Around $218M In Crypto: Q3 Earnings Report
- Tesla reported no change in its crypto holdings after the American multinational automotive company sold close to 75% of its Bitcoin stash in Q2, 2022.
- The company still has $218 million worth of cryptocurrencies and as per the earnings report, the Elon Musk-backed company had suffered zero impairment losses.
- Elon Musk, the CEO of Tesla, believes that Tesla will soon surpass the market capitalization of Apple and revealed that the company will implement a share buyback next year.
Tesla, an American multinational automotive and clean energy company founded by Elon Musk, one of the most celebrated personalities in the world with a huge following, did not change its crypto holdings as confirmed in the third quarter results of 2022. The world’s richest man has been supporting cryptocurrencies, mainly Bitcoin and Dogecoin, for quite some time and is believed to be a strong voice for the crypto community.
According to the Q3 shares results, the revenue came out to be $21.45 billion vs $21.96 billion as expected, per Refinitiv while the earnings $1.05 vs 99 cents per share (adjusted) expected, based on analysts polled by Refinitiv. Overall, the fears of recession has not affected the earnings and growth of the automobile company which has seen a massive spike in its share prices over the years.
Additionally, according to a report from CNBC, Tesla’s net income (GAAP) for Q3 2022 reached $3.33 billion and it is also confirmed that the automotive gross margins are holding steady at 27.9%, which is same as the second quarter of 2022. It is crucial to note that at the same time last year, the company witnessed a profit of over $1.62 billion.
“I can’t emphasize enough we have excellent demand for Q4 and we expect to sell every car that we make for as far into the future as we can see. The factories are running at full speed and we’re delivering every car we make, and keeping operating margins strong,”
said Musk.
The Tesla CEO and supporter of Dogecoin (DOGE), the world’s biggest meme coin, was present on an earnings call on Wednesday to discuss the results wherein he also answered several questions regarding the electric vehicle demand along with the possibilities of a share buyback.
Elon Musk has confirmed that Tesla will buyback shares worth between $5 billion and $10 billion in 2023 but the decision is still pending board approval. The world’s richest man went as far as to say that his autmobile company can “far exceed Apple’s current market cap.”
“In fact I see a potential path for Tesla to be worth more than Apple and Saudi Aramco combined. That doesn’t mean it will happen or will be easy,”
said Musk.
Tesla sold over $1 billion worth of Bitcoin recently, as per its Q2 2022 results and at that time, its digital asset holding was worth $218 following the sell-off. As per the Q3 report, the company did not report impairment charges to the value of its bitcoin holdings and its net holding is still $218 million.
Elon Musk has also once again initiated the purchase of social media platform Twitter with support from crypto exchange Binance. In all likely, the deal will go through this time.
A crypto journalist with over 3 years of experience in DeFi, NFT, metaverse, etc. Parth has worked with major media outlets in the crypto and finance world and has gained experience and expertise in crypto culture after surviving bear and bull markets over the years.
