The quarterly earnings report for Tesla’s Q2 2023 fiscal year was released last night, and it is surprisingly strong given the current state of the economy.
Robust Profit Margins, Unprecedented Revenues
According to the report, the second quarter of 2023 witnessed new records in production and deliveries. Tesla also achieved its highest revenue to date, earning $24.9 billion during this quarter. Although this represents an increase of approximately $1.6 billion compared to the previous quarter, it signifies a remarkable 47% profit growth on an annual basis.
In the second quarter of 2022, Tesla’s revenues were hovering around $17 billion.
At that time, Tesla had disclosed the challenges of coping with the impact of the global economic crisis, which might have been one of the reasons behind Elon Musk’s decision to sell approximately 75% of Tesla’s Bitcoin holdings. This sale had released about $936 million at that time. Musk had clarified that the decision to sell BTC was not due to some worried investors accusing him of a “pump and dump” scheme at that time. Instead, the choice to sell BTC was solely driven by the need for liquidity. Furthermore, Musk had not sold any of his Dogecoin assets.
“I might pump, but I don’t dump… I definitely do not believe in getting the price high and selling or anything like that. I would like to see Bitcoin succeed.”
Crisis Averted, HODLing Continues
Elon Musk, sticking to his word, stopped selling his Bitcoin holdings once the necessary liquidity was achieved.
The source of this HODLing decision remains unclear, whether it originated from personal values or MicroStrategy CEO Michael Saylor’s strategy of using BTC as a hedge against inflation.
Earlier this year, Saylor had revealed to investors that he had managed to stay ahead of his competitors by holding a significant amount of Bitcoin despite the fluctuations in the crypto market over the past two years.
“Ultimately, it’s not easy to see what better strategy there might be. We found by simply acquiring and holding Bitcoin we can outperform our peers in the enterprise software business. The regulatory environment for Bitcoin is improving. As capital flows out of the crypto industry, it flows into Bitcoin.”
However, the fact that Tesla’s Bitcoin assets remained untouched for a year indicates that Musk still believes in the value that Bitcoin can provide worldwide.