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Reading: Elon Holds the Line: Tesla Keeps $951M in Bitcoin as Profits Plunge
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Deythere > News > Crypto > Bitcoin > Elon Holds the Line: Tesla Keeps $951M in Bitcoin as Profits Plunge
NewsBitcoinCrypto

Elon Holds the Line: Tesla Keeps $951M in Bitcoin as Profits Plunge

Elon Holds the Line: Tesla Keeps $951M in Bitcoin as Profits Plunge
Maxwell Mutuma
Last updated: April 23, 2025 11:30 am
By
Maxwell Mutuma
Published April 23, 2025
Published April 23, 2025
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Tesla Inc. ended Q1 2025 with $951 million in Bitcoin, reflecting a decline in market value but no sales. The company maintained its position among top corporate crypto holders, despite a 9% drop in quarterly revenue. At the same time, its net income fell sharply, while it held off on revising growth projections for the year.

Contents
  • Tesla Holds Bitcoin Steady Amid Decline
  • Bitcoin Loss Fails to Shake Tesla
  • Tesla Faces Margin Pressure From Tariffs
    • FAQs
      • How much Bitcoin does Tesla currently hold?
      • Why did the value of Tesla’s Bitcoin drop?
      • Did Tesla change how it accounts for crypto?
      • How did Tesla perform financially in Q1 2025?
      • What are Tesla’s plans for the rest of the year?
  • Glossary of Key Terms
    • Sources:

Tesla Holds Bitcoin Steady Amid Decline

The digital assets Tesla owned decreased to $951 million by March 31 since they had $1.076 billion at December 31. This decline followed a drop in Bitcoin’s price, yet the company did not sell any of its holdings. Tesla holds 11,509 Bitcoin, which it first bought in early 2021.

Tesla Holds Bitcoin Steady Amid Decline
Tesla Holds Bitcoin Steady Amid Decline

The reported figure now exists as part of updated FASB accounting rules that force companies to adjust the values of their crypto assets quarterly. Following the previous reporting rules, companies were required to display the lowest price during their business period. Realized gains and losses are now better reflected through these modified accounting procedures.

Tesla’s on-chain data confirmed no Bitcoin sales, aligning with blockchain tracking platforms like Arkham Intelligence. The company maintains a steady crypto strategy despite general market fluctuations in the industry. However, its Bitcoin exposure remains subject to price swings that directly affect quarterly reports.

Bitcoin Loss Fails to Shake Tesla

The digital assets Tesla owned decreased to $951 million by March 31 since they had $1.076 billion at December 31. The price reduction of Bitcoin did not lead to any Bitcoin sales by the company. Tesla holds 11,509 Bitcoin, which it first bought in early 2021.

Bitcoin Loss Fails to Shake Tesla
Bitcoin Loss Fails to Shake Tesla

Current FASB accounting rules require figures to update their crypto asset valuation quarterly. Organizations that applied the previous reporting method needed to display the lowest price their assets achieved during their business period. The changes to accounting procedures better reflect the realization of gains and losses.

Tesla’s on-chain data confirmed no Bitcoin sales, aligning with blockchain tracking platforms like Arkham Intelligence. The company implements a consistent crypto strategy, which continues to be steady even when broader market conditions of the industry experience changes. Bitcoin exposure at the company results in price fluctuations that directly impact the quarterly financial reports.

Tesla Faces Margin Pressure From Tariffs

The CEO, Elon Musk, now puts his energy into Washington to guide initiatives that restructure the federal government. Elon Musk focused more on national policy, while the U.S. trade and tariff frameworks are transforming. These efforts could affect Tesla’s cost structure, especially for imported materials.

White House tariffs implemented new costs for essential EV components, including battery cells, circuit boards, and specialty glass. As a result, Tesla and other automakers may see margin pressure continue through the year. Management experts predict that worldwide companies will revise their procurement approaches.

Tesla’s financial performance now hinges on market dynamics and evolving regulatory conditions. The market closely monitors Tesla’s business approach and financial resource distribution plan adjustments. Despite earnings weakness, Tesla’s long-term crypto and technology investments remain core to its identity.

FAQs

How much Bitcoin does Tesla currently hold?

Tesla holds 11,509 Bitcoin, which it acquired beginning in 2021. No sales were reported during the first quarter of 2025.

Why did the value of Tesla’s Bitcoin drop?

The value declined due to a drop in Bitcoin’s market price during the first quarter, not because of asset sales.

Did Tesla change how it accounts for crypto?

Yes, Tesla now uses FASB’s updated rule, marking crypto holdings to market each quarter, improving reporting accuracy.

How did Tesla perform financially in Q1 2025?

Tesla’s revenue declined by 9%, and its net income fell to $409 million, reflecting weaker automotive sales and higher costs.

What are Tesla’s plans for the rest of the year?

Tesla did not issue new growth guidance and plans to revisit its 2025 outlook in the next quarterly report.

Glossary of Key Terms

Bitcoin – A digital currency based on blockchain technology used as a decentralized store of value.

FASB (Financial Accounting Standards Board) – An organization that sets accounting standards for public companies in the United States.

Mark-to-market – An accounting method that values assets based on their current market price instead of historical cost.

Automotive Revenue – Income from selling electric vehicles and related automotive products and services.

Tariff – A government-imposed tax on imported goods that can affect costs and pricing in global supply chains.

Sources:

Coindesk

SEC

Arkham Intelligence

Financial Accounting Standards Board

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ByMaxwell Mutuma
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Maxwell is a crypto-economic analyst and Blockchain enthusiast, passionate about helping people understand the potential of decentralized technology. I write extensively on topics such as blockchain, cryptocurrency, tokens, and more for many publications. My goal is to spread knowledge about this revolutionary technology and its implications for economic freedom and social good.
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