"If Musk is nervous about interest rate hikes, how much more we are the ones who are fighting this."
Tesla, which released its third-quarter earnings results last Wednesday, reported revenue of $23.35 billion and profit of $1.85 billion, which marked a decline from the previous quarter.
It's true that its earnings missed Wall Street's expectations, but the electric car company's balance sheet still holds $184 million in net digital assets, mostly Bitcoin (BTC).
In the first quarter of 2021, Tesla invested $1.5 billion in BTC then sold 75% of its holdings in the second quarter of 2022 following concerns about the company's overall liquidity due to the Covid shutdown in China, commented Elon Musk.
Therefore, Musk also said that his team will reduce its holdings of digital assets at any time according to business needs and its views on market conditions and the environment.
Please be informed that the electric car company accepts payments in the largest memecoin Dogecoin (DOGE) for some of its products which can contribute to an "immaterial amount"* of digital assets.
*Amounts that do not have a significant impact on the financial statements
While reporting Tesla's third quarter earnings on October 18, 2023, Musk highlighted several concerns that could affect his company's profitability, among them the high interest rate environment.
This is because when interest rates rise higher, it is more difficult for people to buy the car and they may not be able to afford it, Musk said again.
