Tesla has reported its Bitcoin holdings at $951 million as of the end of the first quarter, solidifying its status as one of the largest corporate investors in the cryptocurrency landscape.
This amount, revealed in the company’s earnings report on Tuesday, reflects a decrease from $1.076 billion recorded at the end of December, a change attributed to the drop in Bitcoin prices over the quarter. Notably, Tesla did not liquidate any of its cryptocurrency assets during this period, according to blockchain data sourced from Arkham Intelligence.
The electric vehicle manufacturer continues to hold 11,509 Bitcoin, a strategic investment it began in early 2021, marking Tesla as the first major automaker to incorporate the digital currency into its financial portfolio.
FASB Rule Change Lifts the Lid on Unrealized Bitcoin Gains
This update in Tesla’s financials highlights the impact of evolving accounting standards for digital assets. The latest figures come in light of a new rule from the Financial Accounting Standards Board (FASB), which mandates that companies reassess and reflect the market value of their cryptocurrency holdings each quarter.
Under previous regulations, companies were required to report only the lowest value of their digital assets during the reporting period, often masking unrealized profits. This new rule provides firms like Tesla with a more comprehensive view of their digital asset valuations.
The timing of this shift is noteworthy as institutional confidence in Bitcoin appears to be on the rise, amid ongoing economic uncertainty.
Q1 Earnings Fall Short as Tesla Battles Cost Pressures and Slowing Demand
Tesla’s total revenue for the first quarter fell by 9%, ringing in at $19.3 billion compared to $21.3 billion from the same period last year. Automotive revenue experienced a sharper decline, dropping 20% to $14 billion, down from $17.4 billion year-over-year.
The company’s net income plummeted to $409 million, or 12 cents per share, a significant decline from the $1.39 billion, or 41 cents per share, reported a year earlier. Tesla has refrained from issuing new guidance for growth prospects for 2023 and intends to revisit its forecasts for 2025 in the upcoming quarter.
CEO Elon Musk has been actively engaging in discussions in Washington, collaborating with the Trump administration on a comprehensive plan aimed at reducing the size of the federal government. Concerns are mounting for electric vehicle manufacturers regarding the White House’s extensive tariff measures, which could result in increased import costs for essential components such as batteries, circuit boards, and specialty glass, thereby squeezing profit margins.
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