• Tesla’s EPS for Q1 fell by 40% to $0.27, missing Wall Street’s already-lowered expectations
• Despite the underwhelming results, TSLA shares saw a slight increase in after-hours trading
• Tesla maintained its Bitcoin holdings at 11,509 throughout the quarter
Tesla has doubled down on its commitment to Bitcoin despite disappointing quarterly earnings, a falling stock price, and slowing electric vehicle sales. As of March 31, 2025, the company holds 11,509 Bitcoin, currently valued at just over $1 billion after a 6% rise in the cryptocurrency’s price to $93,000. This announcement comes as Tesla faces shareholder pressure following a 41% decrease in its stock price this year and heightened scrutiny of CEO Elon Musk’s political activities.
Tesla's Q1 Results Disappoint Check
Tesla’s first-quarter results were disappointing, with earnings per share (EPS) dropping 40% to $0.27, falling short of already-lowered expectations. Revenue also declined by 9% year-over-year, totaling $19.3 billion, significantly below Wall Street’s target of $21.3 billion. Net income plummeted 71% to $409 million, down sharply from $1.39 billion the previous year. Adjusted EPS also missed estimates, coming in at $0.27 compared to analysts’ expectations of $0.44.
Tesla attributed the weak results to fewer deliveries, lower average selling prices, and temporary Model Y production updates across all four of its factories. Overall production fell 16% to 362,615 vehicles, while deliveries dropped 13% to 336,681.
Despite this, Tesla made no changes to its Bitcoin position during the quarter, demonstrating a clear desire to retain it as a long-term asset.
Cheaper EVs and Revive Self-Driving Optimism
Although Tesla's performance did not meet expectations, its stock climbed 0.8% in after-hours trading on Tuesday after the company reassured investors that it still has plenty of cash to fund its roadmap. Earlier in the day, Tesla shares had closed 4.6% higher at $237.97, lifted by a broader market rally and cautious optimism about the company’s longer-term plans.
Tesla told shareholders that all major vehicle initiatives — including its long-awaited lower-cost models — remain on track, with production slated to begin in the first half of 2025.
Matt Britzman, senior equity analyst at Hargreaves Lansdown, noted that the results were disappointing but highlighted the market’s surprising reaction. “This was, objectively, a weak set of numbers—there’s no sugar-coating it,” he told CCN. “Yet, Tesla shares have managed to ride the wave of a broader market rally, as investors seem willing to overlook declining auto sales for now and focus instead on the bigger prize: an autonomous future.”
According to Britzman, Tesla's roadmap includes plans for budget-friendly models, which he described as “streamlined versions of the existing Model 3 and Model Y.”
Bitcoin Holdings Remain Steady
Despite a 12% drop in Bitcoin’s price during the quarter, Tesla reported a holding value of roughly $951 million at the end of March. As BTC recovers to about $93,000, the firm's crypto assets have once again exceeded the $1 billion milestone.
The current valuation shows a transformation in accounting practices. With the new Financial Accounting Standards Board (FASB) rules, companies are obligated to evaluate cryptocurrencies at market prices quarterly, offering investors a clearer understanding of unrealized gains and abandoning the outdated approach of documenting only the lowest value.
The success of that strategy in Q2 and later could hinge on Musk's leadership as much as on Bitcoin's upcoming trends.