Bitcoin gains made up 25% of Tesla’s Q4 net profit, and regulatory credits were likely another ~30%
The recent bitcoin rally gave a major boost to Tesla’s income statement — though it wasn’t enough to offset the carmaker’s drop in overall profits. Yesterday, Tesla reported a sharp decline in earnings, with net income down 71% in Q4 due to a drop in average sales prices and increased spending on AI.
Yet the company’s bottom line received a ~$600 million lift thanks to a new digital asset accounting rule, the CFO noted in the earnings call. The new rule by the Financial Accounting Standards Board allows companies to report digital assets at fair market value each quarter starting in January.
With bitcoin on a tear after the November election, the company’s cash flow statement recorded a $589 million noncash gain, meaning bitcoin accounted for a quarter (25%) of the company’s $2.332 billion profit for Q4. The company also reported that it made $692 million in revenue from automotive regulatory credits — which are highly likely to be pure profit for Tesla.
That would mean that more than half of Tesla’s Q4 net profit was from bitcoin gains, or regulatory credits.
According to company filings, Tesla held 11,509 bitcoins as of December 31, 2024, valued at $1.076 billion. The Texas-based EV maker is now the fifth-largest publicly traded bitcoin holder, trailing behind MicroStrategy — which is on a 10-week bitcoin buying streak — MARA, Riot, and Galaxy Digital, per multiple bitcoin-tracking sources.
Go Deeper: Elon Musk wants you to focus on everything but Tesla’s struggling electric car business
Yet the company’s bottom line received a ~$600 million lift thanks to a new digital asset accounting rule, the CFO noted in the earnings call. The new rule by the Financial Accounting Standards Board allows companies to report digital assets at fair market value each quarter starting in January.
With bitcoin on a tear after the November election, the company’s cash flow statement recorded a $589 million noncash gain, meaning bitcoin accounted for a quarter (25%) of the company’s $2.332 billion profit for Q4. The company also reported that it made $692 million in revenue from automotive regulatory credits — which are highly likely to be pure profit for Tesla.
That would mean that more than half of Tesla’s Q4 net profit was from bitcoin gains, or regulatory credits.
According to company filings, Tesla held 11,509 bitcoins as of December 31, 2024, valued at $1.076 billion. The Texas-based EV maker is now the fifth-largest publicly traded bitcoin holder, trailing behind MicroStrategy — which is on a 10-week bitcoin buying streak — MARA, Riot, and Galaxy Digital, per multiple bitcoin-tracking sources.
Go Deeper: Elon Musk wants you to focus on everything but Tesla’s struggling electric car business
