Tesla Reports $951M in Digital Assets Amid Revenue Shortfall

According to its Q1 2025 earnings report, electric vehicle manufacturer Tesla reported revenue of $19.34 billion, missing analyst expectations by nearly 8% and marking a 9.2% decrease from the same period a year earlier. Nevertheless, the company retained its Bitcoin position, keeping all 11,509 BTC acquired before July 2022 on its balance sheet.

Tesla reported the value of its crypto holdings at $951 million at the end of the first quarter. However, the 11.6% decline reflected a drop in the Bitcoin price, rather than any asset sales. 

Data from Arkham Intelligence and filings with the U.S. Securities and Exchange Commission (SEC) confirmed that the company did not make any cryptocurrency transactions during the quarter. As a result, Tesla continues to hold its entire Bitcoin position.

Tesla's decision to retain its Bitcoin holdings comes as the company reported a sharp decline in key financial indicators. Net income dropped 80% from the previous quarter. Even so, Tesla has not revised its cryptocurrency strategy.

Related: Elon Musk Makes a Bold Financial Move: Tesla’s Bitcoin Gone!

New Accounting Standards and the Role of Bitcoin in Tesla’s Strategy

The decline in the book value of Tesla’s Bitcoin holdings in its latest earnings report was driven entirely by the market downturn. Since the beginning of 2025, the price of Bitcoin has dropped by roughly 12%, which has directly impacted the company’s financial statement. 

Tesla’s decision not to sell any of its crypto assets to cut costs became possible under new accounting rules that took effect this year. Under the updated FASB standards, publicly traded companies are required to revalue digital assets quarterly at fair market value. Previously, companies recognized losses immediately but recorded gains only upon selling the assets. The new rules provide greater transparency but increase exposure to market volatility.

Despite pressure from investors and internal business challenges, Tesla has maintained its Bitcoin position. As revenue declines, public protests continue, and market capitalization falls, the company’s crypto assets have remained one of the more stable elements on its balance sheet. 

Elon Musk said he plans to reduce his involvement in the government department DOGE starting in May and will shift his focus back to Tesla. Under current conditions, Bitcoin appears to remain part of the company’s long-term strategy, reinforcing its role as a digital reserve in Tesla’s corporate structure.