Tesla has reiterated its commitment to Bitcoin even amidst disappointing quarterly earnings, a declining stock price, and a drop in electric vehicle sales. As of March 31, 2025, the company holds 11,509 Bitcoin, valued at over $1 billion following a recent increase in the cryptocurrency’s price to $93,000. This decision comes during a challenging period for Tesla, which is experiencing pressure from investors due to a 41% drop in its stock price this year and increasing scrutiny over CEO Elon Musk’s political engagements.
### Revenue and Delivery Decline
In the first quarter of 2025, Tesla reported revenues of $19.34 billion, missing Wall Street’s expectations of $21.37 billion. This shortfall is primarily tied to its electric vehicle segment, which saw a 13% decrease in deliveries and a 16% decline in production. Consequently, the company experienced a significant 20% year-over-year revenue drop from its core business.
These declining delivery figures reflect broader industry challenges, but they also stem from internal issues unique to Tesla. Ongoing protests and Musk’s focus on political and social media activities have increased investor anxiety. Despite these hurdles, Tesla chose not to make any changes to its Bitcoin holdings during this quarter, demonstrating a commitment to maintaining its position as a long-term asset.
### Unchanged Bitcoin Strategy
Tesla’s current Bitcoin stash of 11,509 BTC was initially acquired in February 2021, with approximately 75% sold off in July 2022. Since then, the remaining Bitcoin has remained untouched. At the end of 2024, the value of this holding was around $1.076 billion. However, it saw a decline of 12% during the first quarter of 2025, reducing its value to approximately $951 million. With Bitcoin’s recent price rebound to $93,000, the valuation of Tesla’s Bitcoin holdings has surpassed the $1 billion mark again.
New regulations from the Financial Accounting Standards Board (FASB) have mandated that companies must mark their digital asset holdings at market value at the end of each quarter. Under this framework, Tesla previously recorded a $600 million unrealized gain in Q4 2024 due to Bitcoin’s price surge. By choosing not to buy or sell any Bitcoin in Q1 2025, Tesla appears to adopt a “HODL” strategy—akin to other corporate entities like MicroStrategy that also consider Bitcoin a strategic reserve.
### Musk’s Focus Shift
Elon Musk, known for his prominent support for Dogecoin, recently announced plans to reduce his involvement with the meme cryptocurrency. He indicated that starting in May 2025, his focus would shift as Dogecoin operations become more self-sufficient. This renewed emphasis on Tesla coincides with analysts stressing the urgent need for the company to implement strategic changes.
Dan Ives from Wedbush highlighted the situation as a “code red,” arguing that Tesla may need to revisit its financial strategies, including how it manages its Bitcoin assets if ongoing challenges persist.
### Market Outlook
Despite the current turbulence in the cryptocurrency market, analysts suggest that conditions will stabilize by mid-May due to global economic uncertainties and trade pressures. However, there remains an optimistic outlook for digital assets, particularly Bitcoin, in the latter half of the year. Analysts predict a rebound driven by effects following the Bitcoin halving, increased institutional buying, and clearer regulatory frameworks in the U.S.
As Tesla proceeds through this financial storm, its steadfast position on Bitcoin emphasizes the cryptocurrency’s growing role in its overall strategy. Whether this strategy will yield positive results in the second quarter and beyond largely depends on not only Musk’s leadership but also on Bitcoin’s forthcoming trajectory.
