tech

Hyunsoo Rim1/30/25

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

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Tesla asks Trump not to repeal legal underpinning for carbon emissions rules

Electric vehicle company Tesla would prefer that the government didn’t roll back long-standing emissions rules, according to new comments from Tesla on a proposal to reconsider 2009 findings that said greenhouse gas emissions from motor vehicles contribute to air pollution and could endanger the public.

Tesla wrote:

“The Endangerment Finding — and the vehicle emissions standards which flow from it — have provided a stable regulatory platform for Tesla’s extensive investments in product development and production. This clear regulatory structure has provided incentives for continued innovation in motor vehicle technology and is vital to continued global competitiveness by companies based in the United States.”

Tesla relies heavily on regulatory credit revenues it receives from other automakers that don’t build enough electric vehicles. President Trump’s One Big Beautiful Bill Act signed this summer essentially eliminated the marketplace for such credits, which will cost Tesla about $255 million in revenue each quarter going forward. If the EPA proposal goes through, it would dismantle the foundation for tailpipe emissions rules in the first place.

Tesla urges Trump not to repeal vehicle emissions rules, climate finding

Tesla urges Trump not to repeal vehicle emissions rules, climate finding

Tesla wrote:

“The Endangerment Finding — and the vehicle emissions standards which flow from it — have provided a stable regulatory platform for Tesla’s extensive investments in product development and production. This clear regulatory structure has provided incentives for continued innovation in motor vehicle technology and is vital to continued global competitiveness by companies based in the United States.”

Tesla relies heavily on regulatory credit revenues it receives from other automakers that don’t build enough electric vehicles. President Trump’s One Big Beautiful Bill Act signed this summer essentially eliminated the marketplace for such credits, which will cost Tesla about $255 million in revenue each quarter going forward. If the EPA proposal goes through, it would dismantle the foundation for tailpipe emissions rules in the first place.

For $2.5 billion, Amazon has settled a case brought by the Federal Trade Commission in which the regulatory body alleged Amazon had tricked people into signing up for Prime and made it difficult to cancel. The sum includes $1.5 billion in redress to consumers, the Financial Times reports, and $1 billion in civil penalties — the most the organization has ever charged for violating its rules. However, it may be just a drop in the bucket to Amazon, which pulled in more than $12 billion in subscription revenue last quarter alone. Amazon will also have to alter its user interface to prevent mistaken sign-ups and to create an easier way to cancel. The stock doesn’t appear to be moving on the news.

tech

Cipher reverses course after Google deal, sinks 10%

After rising nearly 10% premarket on news that Google was taking a 5.4% equity stake in the company, Cipher Mining is now trading down about 10% after market open. It’s unclear why.

The stock is still up more than 90% for the month and more than 175% for the year.

Cipher Mining soars after Google takes stake as part of AI hosting deal

Cipher Mining soars after Google takes stake as part of AI hosting deal

tech

Tesla slips as BYD outsells Tesla in Europe again

Chinese EV maker BYD outsold Tesla in the European Union again in August, according to new data from the European Automobile Manufacturers’ Association (ACEA).

Tesla’s stock is down nearly 3% today amid a broader sell-off of some tech-focused stocks, while BYD’s ADRs are up more than 2%.

BYD sold 9,130 vehicles last month versus Tesla’s 8,220, a feat BYD’s leadership has said it’s pulling off thanks to its wider array of offerings. Others have blamed Tesla’s declining sales in the region on CEO Elon Musk’s forays into European politics causing brand damage.

Tesla’s year-to-date sales have shrunk 43% in the EU compared with the same period last year, while BYD’s year-to-date sales grew 244%.

BYD began outselling Tesla in the region this April, but Tesla still has higher sales for the year, by nearly 20,000 units.

Musk’s xAI sues OpenAI, alleging theft of trade secrets

Following a recent lawsuit against a former employee over allegedly stealing trade secrets, Musk’s xAI is now suing the company that executive left to work for — OpenAI. The suit accuses OpenAI of “inducing” recruits that it poached to steal trade secrets from the company.

Elon Musk At The White House

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