Tesla, the electric vehicle company owned by Elon Musk, reported a $600 million gain on its Bitcoin holdings in the fourth quarter, thanks to a new accounting rule allowing quarterly adjustments of digital asset valuations based on market prices. Arkham Intelligence indicates that Tesla holds 11,509 BTC, currently valued at around $1.19 billion. Although the company did not explicitly disclose its Bitcoin holdings in its Q4 2024 report, it did note a $600 million mark-to-market gain under “digital assets.”
The recent accounting update significantly boosted Tesla’s reported Bitcoin value, increasing digital assets to $1.076 billion, compared to the previously impaired value of $184 million under older accounting rules. This is due to a rule by the Financial Accounting Standards Board (FASB), enacted in December 2023, that allows businesses to report crypto holdings at fair market value under US GAAP standards. Prior to this change, companies had to record declines in value but couldn’t update holdings for price increases unless sold, potentially misrepresenting financial strength.
In terms of overall performance, Tesla’s Q4 GAAP income reached $2.3 billion, with Bitcoin contributing to this figure. Revenue increased by 2% to $25.71 billion, though it fell short of analysts’ projections, which were set at $27.22 billion. The company also missed profit expectations, reporting earnings per share of $0.73, below the forecast of $0.76. Additionally, Tesla’s total Q3 operating expenses rose over 9% from the previous quarter, reaching $2.59 billion.
Furthermore, Tesla’s fourth-quarter earnings report was released shortly after President Donald Trump began his second term. Elon Musk has been both a vocal advocate and a financial supporter of Trump, serving as the largest donor in the 2024 US presidential election and as an informal advisor during Trump’s campaign and presidency. In January 2025, Trump appointed Musk as the administrator of the US Department of Government Efficiency (DOGE).
Twitter Text: Tesla’s Q4 financials reveal a $600 million Bitcoin gain, a revenue miss, and Musk’s new role with Trump’s administration. #Tesla #Bitcoin #ElonMusk