Tesla disappointed by missing both revenue and profit expectations in the second quarter of 2025.
But there was another striking detail in the company's investor presentation: Tesla's digital assets.
The company's digital asset portfolio is currently valued at $1.24 billion. While this represents a significant increase from $722 million in the same period last year, given Bitcoin's 80% appreciation in the past year, this increase actually means Tesla is missing out on billions of dollars in potential earnings.
The electric vehicle giant announced its confidence in the cryptocurrency's long-term potential by investing $1.5 billion in Bitcoin at the beginning of 2021. At the time, CEO Elon Musk's social media outcry supporting Bitcoin had a significant impact on the crypto market. However, in mid-2022, Tesla sold 75% of its Bitcoin holdings. At the time, Bitcoin was trading well below its current value.
Today, Bitcoin is nearing $119,000. Had Tesla held Bitcoin assets at the time, the investment would have reached a current value of approximately $5 billion. The $936 million in Bitcoin the company liquidated in 2022 would be worth approximately $3.5 billion today.
Tesla announced the decision to strengthen its cash position amid significant market turmoil during the quarter it sold cryptocurrencies. The company lost two-thirds of its market capitalization in 2022, while Bitcoin fell by 60%.
However, market conditions have shifted. Bitcoin has undergone a rapid recovery over the past two years. US President Donald Trump's plan to ease regulations and establish a strategic Bitcoin reserve has been one of the factors supporting this rise.
Tesla reported a $284 million Bitcoin-fueled profit in the second quarter of 2025. However, this profit represents only a small fraction of the potential return. The company's net income was $1.17 billion in the period, while car sales revenue declined for the second consecutive quarter.
Musk has toned down his social media posts about cryptocurrencies in recent years. In March 2022, shortly before Tesla's Bitcoin sale, he said, “I'm still holding my Bitcoin, Ethereum, and Dogecoin, and I won't be selling them.”
*This is not investment advice.
