Tesla confirms it still holds its massive Bitcoin stash worth over $1.2 billion as of Q2 2025 amid mixed earnings results.
The company, led by Elon Musk, reported an unrealized gain of $284 million from its Bitcoin holdings in the second quarter of 2025, taking advantage of a sharp rally in the crypto price during the period.
Bitcoin surged approximately 30% in the second quarter. It climbed from around $83,000 on April 1 to about $108,789 by the end of June. As of press time, the cryptocurrency continues its upward momentum, trading at $118,714, up 0.25% in the past 24 hours.
This crypto-driven windfall provided a bright spot in an otherwise difficult earnings season for Tesla. Notably, the company is grappling with weakening demand for its core electric vehicle (EV) lineup.
The accounting change that allowed this gain to be recognized stems from a new rule issued by the Financial Accounting Standards Board (FASB), effective from Q1 2025.
It enables public companies to record the fair market value of their digital assets quarterly. This marks a significant shift from the previous rule, which mandated reporting only the lowest value those assets hit during the reporting period.
Tesla Bitcoin Holdings
Under the old method, Tesla and other crypto-holding firms often saw unrealized gains left off the books if prices recovered. The updated FASB rule now gives shareholders a clearer picture of how these volatile assets are truly performing.
This was particularly impactful for Tesla, which reported a $125 million loss on digital assets in Q1 but rebounded sharply in Q2.
Notably, Tesla holds 11,509 Bitcoins, currently valued at around $1.2 billion, according to BitcoinTreasuries.net. This places it among the top ten corporate holders globally. For context, the company has been holding this Bitcoin for several quarters without sale since 2022.
EV Sales Slump Shadows Earnings
Despite the crypto-related boost, Tesla’s core business is under pressure. Revenue from automotive sales declined 16% year-over-year, the second straight quarterly drop. This mirrors a 14% decrease in vehicle deliveries for Q2, falling to 384,000 units, based on earlier company disclosures.
Tesla’s total revenue for the quarter was $22.5 billion, coming in slightly below Wall Street estimates of $22.74 billion. Meanwhile, adjusted earnings per share landed at $0.40, falling short of the expected $0.43.
Tesla Stock Sinks as Rivals Gain Ground
Tesla’s stock has fallen roughly 18% year-to-date, underperforming major tech peers. In contrast, the broader Nasdaq Composite is up about 9% in 2025. Analysts attribute the sell-off to rising competition, strategic delays, and political tensions.
One notable setback is the company’s postponement of its low-cost “Model 2” EV, a vehicle that was expected to compete with budget-friendly electric offerings.
The delay has created an opportunity for Chinese EV manufacturers to expand aggressively and capture market share with their affordable, technology-rich models.
Crypto Gains Can’t Drive Tesla Alone
While the accounting change regarding crypto reporting has offered Tesla a financial cushion this quarter, the company’s long-term prospects will depend on its ability to revitalize vehicle sales and fend off rising competition. For now, the Bitcoin bump is a temporary distraction from deeper operational challenges.
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