Tesla’s first-quarter 2025 earnings report revealed a mixed financial picture, as the electric vehicle giant missed Wall Street expectations but reported significant gains from its cryptocurrency holdings.
The company posted adjusted earnings of $0.27 per share on revenue of $19.34 billion, marking a decline from $0.45 per share on $21.3 billion in revenue during the same period last year. Automotive revenue, which constitutes the majority of Tesla’s sales, fell 20% year-over-year due to lower vehicle volumes and decreased average selling prices. Tesla attributed the weaker performance to increasing uncertainty in the automotive and energy markets, exacerbated by evolving trade policies impacting global supply chains .
Despite the earnings miss, Tesla reported that its digital asset holdings, primarily Bitcoin, are now valued at approximately $951 million. This valuation reflects a significant increase from the previous quarter, largely due to a new accounting rule adopted by the Financial Accounting Standards Board (FASB) in late 2023. The rule allows companies to report digital assets at fair market value, rather than the lowest recorded price since purchase, enabling Tesla to recognize a $600 million gain on its Bitcoin holdings in the fourth quarter of 2024 .
Tesla’s CEO, Elon Musk, addressed investor concerns during the earnings call, committing to allocate more of his time to Tesla amid political scrutiny over his involvement with the Trump administration. He also reiterated the company’s focus on affordability and confirmed that new, lower-cost models are on track for production in early 2025 .
While Tesla’s core automotive business faces challenges, the company’s substantial cryptocurrency holdings have provided a financial cushion. As Tesla continues to navigate market uncertainties and regulatory changes, its strategic investments in digital assets may play a pivotal role in its financial performance moving forward.
