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Tesla’s Bitcoin Stash Remains Intact in Q4 2024, Adding $600M in Value

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Giuseppe Ciccomascolo
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Key Takeaways
  • Tesla’s Bitcoin holdings surged in value, climbing from a carrying value of $184 million to a fair market value of $1.08 billion.
  • The company is now the sixth-largest corporate holder of Bitcoin.
  • However, Tesla’s fourth-quarter earnings and revenue missed expectations, weighed down by price cuts and shrinking profit margins.

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. 

Bitcoin Lifts Tesla’s Balance Sheet

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.

Ten largest BItcoin holders
Tesla ranks six among largest Bitcoin holders. | Credit: Bitcoin Treasuries

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.

Results Miss Expectations

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.

Tesla net income and adjusted Ebitda
Tesla’s net income and adjusted Ebitda over the time. | Credit: Tesla

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.

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Giuseppe Ciccomascolo

Giuseppe Ciccomascolo began his career as an investigative journalist in Italy, where he contributed to both local and national newspapers, focusing on various financial sectors. Upon relocating to London, he worked as an analyst for Fitch's CapitalStructure and later as a Senior Reporter for Alliance News. In 2017, Giuseppe transitioned to covering cryptocurrency-related news, producing documentaries and articles on Bitcoin and other emerging digital currencies. He also played a pivotal role in establishing the academy for a cryptocurrency exchange website. Crypto remained his primary area of interest throughout his tenure as a writer for ThirdFloor.
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