Tesla Holds Firm On Bitcoin Stash, Reports $951M in Q1 Holdings Despite a 71% dip in Profits

Tesla closed the first quarter holding $951 million in Bitcoin, maintaining its status as one of the largest corporate holders of the cryptocurrency.

This figure, disclosed in its latest earnings report, is down from $1.076 billion at the end of December, reflecting a roughly 12% decline in Bitcoin’s market price during Q1.

Importantly, Tesla did not buy or sell any Bitcoin during the quarter, with on-chain data confirming its holdings remained steady at 11,509 BT. Tesla began accumulating Bitcoin in early 2021, becoming the first major automaker to add the digital asset to its balance sheet.

The company’s Bitcoin position continues to draw attention as new Financial Accounting Standards Board (FASB) rules now require firms to mark crypto holdings to market each quarter—giving investors a more transparent view of unrealized gains and losses.

Despite the stable crypto holdings, Tesla’s Q1 financial results fell short of expectations. Revenue dropped 9% year-over-year to $19.3 billion, with automotive revenue down 20% amid lower deliveries and price cuts.

Net income plunged to $409 million, or 12 cents per share, compared to $1.39 billion, or 41 cents, a year earlier. The company did not provide new growth guidance and said it would revisit its 2025 outlook next quarter.

Elon Musk has previously attributed the drop in Tesla's shares and sales as a rocky moment for the company due to the economic circumstances.

Musk cites tough economic times, saying

"Tesla is not immune to the macro demands for cars. When there is economic uncertainty, people generally want to pause on doing a major capital purchase like a car."

However, many analysts are saying that the decline of Tesla stocks and sales could be a direct result of Musk's political affiliation with Trump and his appointment at DOGE.

Musk's dual role as Tesla CEO and head of DOGE has faced harsh criticism, particularly among investors who have been urging him to step dorm from his government advisory position and concentration on addressing company performance issues.

Musk recently announced that he would be cutting back his time at DOGE starting next month, adding he would spend only one to two days per week on it. But it seems that the damage done by Musk's political run seems irreversible.

While some supporters of Trump might be more inclined to buy Tesla than there was in the past, but that is not enough to make up for the loss of sales to liberal buyers.