**Tesla Conceals $97 Million Bitcoin Loss in Adjusted Earnings Report**
Tesla Inc. recently reported its weakest quarterly performance in years, though its adjusted earnings painted a different picture. The electric vehicle giant posted non-GAAP earnings of $900 million, significantly higher than its official net income of $400 million. This discrepancy appears to stem from Tesla excluding a $97 million loss from its Bitcoin holdings, along with adjustments for stock-based compensation. The move comes as CEO Elon Musk reduces his involvement with the Trump administration, raising questions about the company's financial transparency.
Despite the loss, Tesla remains a major Bitcoin holder, retaining over $1 billion worth of the cryptocurrency. The company currently owns 11,509 BTC, valued at approximately $1.049 billion, according to Arkham Intelligence. The decline in Bitcoin’s value—down nearly 12% in Q1—contributed to the markdown, though Tesla has not sold any of its holdings. Bitcoin has since rebounded slightly, gaining 11% over the past week, but remains 10% lower over the last three months.
Tesla’s overall Q1 revenue also fell short of expectations, coming in at $19.34 billion against Wall Street’s forecast of $21.37 billion. Surprisingly, despite the disappointing results, Tesla’s stock rose by 6.5% over the past five trading sessions and saw a 4.5% pre-market increase, suggesting investor optimism.
The U.S. Securities and Exchange Commission (SEC) may scrutinize Tesla’s accounting practices, particularly its selective inclusion of crypto gains in non-GAAP figures. The SEC has previously flagged companies like Marathon Digital for similar financial adjustments. Meanwhile, Musk’s reduced role in the Dogecoin community coincides with Tesla’s financial struggles and increasing regulatory attention.
As the crypto market shows signs of recovery, approaching a $3 trillion total capitalization, Tesla’s Bitcoin holdings remain a volatile yet significant part of its financial strategy. Whether regulators will challenge its accounting methods remains to be seen.
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