Tesla’s Q4 2024 results were a mix of gains and setbacks.
While a Bitcoin (BTC) rally significantly boosted the company’s net income, weaker vehicle pricing and declining profit margins led to a disappointing earnings report.
At the end of Q3 2024, Tesla’s Bitcoin holdings had a carrying value of $184 million—well below their actual market worth of $729 million. By the close of Q4, a surging Bitcoin market pushed that fair value to $1.08 billion, adding roughly $347 million to Tesla’s balance sheet.
Tesla remains one of the largest corporate holders of Bitcoin, ranking sixth among public companies with 9,720 BTC, according to Bitcoin Treasuries .
The company has not added to or sold its holdings for another quarter, signaling a continued commitment.
A recent accounting rule change further bolstered Tesla’s Q4 financials.
Previously, companies were required to report Bitcoin at its lowest recorded value, regardless of price recovery. However, a new Financial Accounting Standards Board (FASB) policy, set to take full effect in 2025, now allows firms to mark digital assets to market each quarter.
The shift provided Tesla with a significant earnings boost, adding 68 cents per share in Q4. CFO Vaibhav Taneja noted the change contributed $600 million to net income—one of the few bright spots in an otherwise challenging quarter.
Despite the Bitcoin windfall, Tesla’s core business struggled in Q4, with results falling short of Wall Street expectations.
The company reported adjusted earnings per share of 73 cents, below the expected 76 cents, while revenue reached $25.71 billion, missing the forecasted $27.26 billion.
Revenue grew just 2% yearly, with automotive revenue declining 8% to $19.8 billion, including $692 million from regulatory credits.
Operating income dropped 23% to $1.6 billion, mainly due to lower average selling prices across Tesla’s Model 3, Model Y, Model S, and Model X lines.
Net income plummeted 71% to $2.32 billion, or 66 cents per share, from $7.93 billion a year earlier, though last year’s figure included a $5.9 billion one-time tax benefit.
Tesla reported fourth-quarter deliveries of 495,570, bringing total 2023 deliveries to about 1.8 million, marking the company’s first annual decline.