Tesla Lost $106M in BTV Volatility in Q3 – Here’s How and Why

Tesla’s Q3 earnings report was released last week, and there were several key takeaways from the results that the market responded to in different ways. If you invest at the right time, you may see your money grow exponentially and be prepared for life in the Bitcoin Era.


What is BTV?

BTV is a volatility index that measures the percentage change in the price of a basket of out-of-the-money put options on Tesla (TSLA) from one day to the next. The riskier the environment, the more volatile BTV will be. This can be because of bad news about TSLA, or if there are any forces that might make it worse for TSLA like a hurricane or an earthquake. 

For example, Tesla lost $4 billion worth of value in September due to Hurricane Irma. After taking this into account, as well as all other events impacting the market (like Elon Musk tweeting about his personal beef with CEO of Ford), Tesla lost only $106 million worth of value during quarter 3 2017 thanks to BTV. This was much less than what they lost during quarters 1 and 2 combined.


What caused Tesla’s loss?

One of the causes of Tesla’s loss can be attributed to the company’s need for working capital. Tesla has been using up a lot of cash as it scales its manufacturing capacity from producing 1,500 cars per week to 5,000 cars per week. The company was also contributing more than expected to operating expenses because it was spending on new production equipment and expanding its service centers. 

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However, there are other factors that contributed to Tesla’s loss in Q3: – Cash Used by Operating Activities. In order to keep up with their Model 3 production rate goal of 5,000 cars per week, Tesla needs an additional $10 billion by the end of 2018. To raise this amount, they would have to raise funds through issuing debt or equity securities or obtaining an investment from a financial institution.


What does this mean for Tesla?

Tesla has been struggling to produce its Model 3, which is the more affordable electric vehicle that Tesla was planning to sell. In order for a company to be profitable, it needs to have a steady production rate of a single product. Right now, Tesla is having an issue with the lower-priced Model 3 because they are unable to produce enough of them. 

This loss shows that there are still some problems with their strategy to go into the mass market with one car. The company also announced that this will cause layoffs of 9% of employees or 4,500 people. It seems like Tesla might need to do something drastic before it can start making money again.


What can Tesla do to prevent this in the future?

One thing Tesla can do to prevent these losses is to diversify their investments. While they currently have a 10% investment in SolarCity, they could invest more money into it or invest the same amount of money into other companies like Uber or Airbnb. They also need to be careful not to overextend themselves by investing too much in one company. Lastly, they should consider reinvesting some of their earnings back into the company so that future losses will be minimized if this happens again. 

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In conclusion, Tesla has lost over $100 million in BTV volatility this quarter due to an influx of purchases and sudden price drops. In order to prevent these kinds of losses from happening again, Tesla needs to diversify their investments, be cautious about the amount they’re investing in one company, and consider reinvesting some of their earnings back into the company.



If you want to learn about the ins and outs of Tesla, or keep up with what’s going on with the company, it may be worth checking out their Twitter account. It can be an interesting way to see how Elon Musk interacts with the world he helped create. Plus, there’s also some good scoops that get tweeted regularly by Tesla employees themselves. And if you’re looking for a place where the company posts its SEC filings, this is where they live. That’s not all these documents are great resources if you need to know more about company valuation.