Despite Disappointing Earnings, Tesla Doubles Down on Bitcoin Bet, Holding 11,509 BTC Worth Over $1B

As of March 31, 2025, the company holds 11509 Bitcoin, currently valued at just over $1 billion after a 6% rise in the cryptocurrency's price to $93000.

Despite disappointing earnings, plunging stock prices, and slowing electric vehicle sales, Tesla has maintained its strategic focus on Bitcoin.

As of March 31, 2025, the company held 11,509 Bitcoin, which has risen slightly by 6% to $93,000, pushing the portfolio value just over $1 billion.

This development comes after a 41% decline in Tesla’s stock price this year, along with growing scrutiny of CEO Elon Musk’s political involvement.

The company’s Q1 2025 revenue reached $19.34 billion, falling short of Wall Street’s projection of $21.37 billion.

The shortfall is largely attributed to the company’s main business—electric vehicles—which saw a 13% drop in deliveries and a 16% dip in production, leading to a 20% year-over-year decline in revenue from its core segment.

While Tesla’s declining delivery numbers reflect broader industry challenges, some of the company’s struggles are unique, with ongoing protests and concerns over Musk’s dual focus on political appointments and social media commentary adding to investor unease.

Despite this, no changes were made to Tesla’s Bitcoin position during the quarter, indicating a clear intention to maintain it as a long-term asset.

Tesla’s current holding of 11,509 BTC was initially acquired in February 2021, and about 75% of it was sold off in July 2022. Since then, the remainder has been left untouched.

At the end of 2024, this stash was valued at approximately $1.076 billion. However, by the close of Q1 2025, Bitcoin’s 12% decline had reduced the portfolio’s worth to around $951 million.

But as Bitcoin prices rebounded to $93,000, the portfolio’s value has climbed back above the $1 billion mark.

New rules introduced by the Financial Accounting Standards Board (FASB) require companies to mark their digital asset holdings to market value at the end of each quarter.

Under this regime, Tesla previously recorded an unrealized gain of $600 million in Q4 2024 due to Bitcoin’s rally.

Tesla’s decision not to buy or sell any Bitcoin in Q1 2025 reflects a “HODL” strategy, similar to that of other corporate holders like Strategy and Metaplanet, which treat Bitcoin as a hedge or strategic reserve.

Elon Musk, known for his support of Dogecoin (DOGE), announced plans to reduce his involvement with the meme coin and shift his time allocation in May 2025 as DOGE operations become more self-sufficient.

This renewed focus on Tesla comes as analysts call for urgent strategic moves.

Dan Ives of Wedbush described the company’s situation as “code red,” suggesting that Tesla may need to reconsider parts of its financial strategy, including how it handles its Bitcoin holdings, if current challenges persist.

Meanwhile, BeInCrypto predicts that crypto markets will remain volatile until mid-May due to global economic uncertainty and trade pressures.

However, the broader outlook for digital assets, particularly Bitcoin, is more optimistic for the second half of the year, with analysts expecting a rebound driven by post-halving effects, institutional buying, and regulatory clarity in the US.

As Tesla navigates financial turbulence, its firm stance on cryptocurrency signals that it’s now more than just a side bet—it’s part of a calculated strategy.

Whether that strategy pays off in Q2 and beyond may depend as much on Musk’s leadership as on Bitcoin’s next move.