According to latest reports, Tesla Inc., the electric vehicle giant has reported $951 million in Bitcoin holdings for the first quarter of 2025, in its earnings call on Tuesday. Despite a 71% drop in net income, the company didn’t buy or sell any Bitcoin in the quarter, according to Arkham Intelligence.
The balance, which reflects an unchanged 11,509 BTC, dropped from $1.076 billion at the end of Q4 2024. The decline is all due to Bitcoin’s price movement, not selling. Tesla’s crypto commitment stands out as its automotive business is struggling and investors are getting worried about its slowing growth.
Earnings Miss Shows Tesla’s Operational Issues
Tesla reported first quarter revenue of $19.34 billion, ‘missing Wall Street’s $21.35 billion. Net income was $409 million, down 71% from $1.4 billion a year ago. The company cited reduced vehicle deliveries and intense pricing pressure in core markets like China and the U.S.
Margins also shrank to 5.5%, the lowest since 2019. Shares rose 5% after hours as investors were optimistic after CEO Elon Musk said he would be focusing more on Tesla.
“I will be significantly reducing my outside engagements and spending more time at Tesla,” Musk said.
Bitcoin’s Role Under New Accounting Rules
This is Tesla’s first quarter under the Financial Accounting Standards Board’s new rule that requires companies to mark crypto assets to market value each quarter. Prior to this, unrealized gains were reportedly not recognized and crypto assets were often undervalued on the balance sheet.
Tesla now values Bitcoin at fair market value, creating a more accurate picture. Arkham Intelligence data shows Tesla’s Bitcoin holdings are worth around $1.049 billion based on current BTC prices, more than the reported $951 million due to end-of-quarter price timing.
“The FASB rule provides better transparency for investors by reflecting true crypto exposure,” said Jennifer Schwartz, a senior accounting analyst at Bloomberg Intelligence. “Tesla is holding through volatility, so they must be long-term believers in Bitcoin.”
Despite rumors in online forums, Tesla has not bought or sold any Bitcoin since Q1 2022. Its crypto wallet is reportedly frozen, with no activity on its known addresses in Q1 2025, according to Arkham data.
This is in line with Musk’s previous comments that Bitcoin is a “long term asset” and the company views it as a hedge, not a trading vehicle.
He didn’t comment on future crypto purchases or if the company will allocate more to crypto as it invests more in AI and autonomous vehicles.
Future Focus: Robotaxis, AI, and Cost Reduction
Tesla also used the earnings call to talk about the roadmap for the next generation of vehicles. Musk said they will accelerate the plans to launch a $25,000 car and a fully autonomous robotaxi by early 2025.
These are seen as key to reviving sales, after the company delivered just 386,810 vehicles in Q1, a 20% drop from the previous quarter.
Despite rising costs, Tesla reaffirmed it would spend over $10 billion this year, most of which is going towards Dojo supercomputers and full self-driving (FSD) software expansion.
“We’re building for exponential growth in autonomy,” Musk said. “But we’re also being extremely mindful of operational efficiency.”
Market Reaction Mixed Amid Bitcoin Optimism
Officials reported that Tesla shares rose 5% in after-hours as investors reacted to the Bitcoin strategy and product direction. Analysts were split: some liked the renewed focus on operations, others said demand-side issues would persist.
“Crypto holders see Tesla’s consistent Bitcoin strategy as a vote of confidence in digital assets, especially now that accounting standards allow full value recognition,” said Chris Brendler, a senior equity analyst at DA Davidson.
The rest of the crypto market is watching to see how other big companies adopt FASB’s crypto reporting standard in the coming quarters.
FAQs
How much is Tesla’s Bitcoin?
$951 million as of March 31, 2025, based on 11,509 BTC.
Did Tesla buy or sell any Bitcoin in Q1 2025?
Tesla did not ‘transact any Bitcoin in the first quarter, according to Arkham Intelligence data.
What are the new FASB rules for crypto?
FASB now requires companies to report the fair market value of digital assets each quarter, impacting the balance sheet and net income.
Why did Tesla’s profits drop in Q1 2025?
Lower vehicle deliveries and increased pricing competition globally.
How did investors react to the earnings?
Tesla shares ‘rose over 5% in after-hours trading
Glossary
Tesla Bitcoin – Tesla’s reported BTC balance, a line item in its treasury.
FASB – The US accounting standards body that sets rules for digital assets.
Mark-to-Market – Valuing assets at current market price, not historical cost.
Dojo – Tesla’s supercomputer for training AI models for autonomy.
Robotaxi – Tesla’s fully autonomous ride-hailing car coming in 2025.
Sources
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