Tesla Reports $951M in BTC Holdings Despite Drop in Q1 Earnings

Tesla, the electric car manufacturer, continues to hold a significant position as one of the largest corporate holders of Bitcoin. According to the latest earnings report, the firm has $951 million in Bitcoin at the end of the first quarter despite a significant drop in its Q1 earnings. However, this figure reflects a notable decline from $1.076 billion at the close of December.

Tesla Holds 11,509 BTC

Despite the drop in valuation, Tesla has not recorded any BTC transactions in the past three months, according to on-chain data from Arkham Intelligence. The company continues to hold 11,509 BTC, ranking it sixth among corporate holders of Bitcoin. 

Bitcoin’s 12% decline in Q1 2025 slightly reduced the value of Tesla’s BTC holdings. However, with the largest crypto asset’s recent recovery, the value of Tesla’s Bitcoin stash has again exceeded $1.06 billion. At the time of writing, BTC trades at $94,188, representing a 6.4% surge over the last 24 hours.

Tesla’s Bitcoin investment continues to draw attention, especially under the rules from the Financial Accounting Standards Board (FASB).  This rule, which took effect last December, requires corporate holders of cryptocurrency to use the estimated market value of these assets on their balance sheets each quarter, starting from the beginning of 2025.

Previously, companies had to record the lowest value of the asset during the reporting period, often obscuring unrealized gains. This change now allows firms like Tesla to present a current view of their digital asset positions, which could lead to increased earnings volatility. Notably, this shift comes at a time when institutional confidence in Bitcoin is strengthening, despite ongoing macroeconomic uncertainty.

Elon Musk to Refocus on Tesla Following Drop in Q1 Earnings 

Meanwhile, Tesla posted $19.3 billion in Q1 revenue, thus falling short by 9% of analysts’ expectations of $21.37 billion. Automotive revenue fell 20%, dropping to $14 billion from $17.4 billion in the same quarter last year. The company’s vehicle deliveries declined 13% compared to Q1 2024, while production decreased 16%. 

Tesla attributed the disappointing decline in production to an update to four Model Y production lines. Moreover, the company CEO, Elon Musk, announced plans to reduce his involvement with the White House DOGE office to focus more on his business.

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