Tesla Q3 Beats, EPS Drops; Musk on AI & $80M Bitcoin
Tesla Q3 earnings report showed revenue of $28.1 billion, above the $26.4 billion consensus, driven by automotive sales growth. Adjusted EPS was $0.50, missing the $0.54 estimate, pressured by rising operating costs and heavy R&D spending on AI, full self-driving and robotics. Automotive gross margin fell to 15.4% excluding regulatory credits.
Free cash flow reached $4 billion, supported by working capital improvements and pre-expiration EV tax credit demand. Tesla recorded an $80 million unrealized profit on its Bitcoin holdings, reflecting the company’s diversified asset allocation.
CEO Elon Musk reiterated the long-term focus on AI, robotics and full self-driving. He defended his proposed $1 trillion compensation package ahead of the November 6 shareholder vote. Analysts’ views were split: some flagged tight margins and execution risks; others highlighted strong cash flow and upside from autonomy and AI.
Looking ahead, the end of federal EV tax credits may strain sales and margins. Tesla aims for cost efficiencies and new products to sustain growth. Traders should watch Tesla Q3 earnings impact on market sentiment, Bitcoin exposure, margin recovery and Musk’s leadership stability for potential trading opportunities.
Bullish
Tesla’s $80 million unrealized Bitcoin profit underscores strong institutional holding and adds bullish sentiment for BTC. In the short term, traders may interpret this as a positive catalyst, potentially boosting Bitcoin demand as major corporations demonstrate confidence in digital assets. Long term, Tesla’s commitment to maintaining crypto on its balance sheet could encourage other firms to follow suit, supporting broader adoption and stability in the market. However, macro and regulatory headwinds remain. Overall, the Bitcoin profit news provides a bullish signal for market sentiment and price momentum.