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- Tesla has released its Q1 2025 earnings reports, and there was a low performance in the total revenue of $19.3m.
- Tesla has not sold any of its Bitcoin holdings.
Tesla recorded a net income of $934 million through Q1 2025, a 39% decrease from the previous quarter in terms of adjusted figures. This fell short of Wall Street’s estimated figure of $ 1.5 billion, as reported in a filing made on Tuesday. At the same time, total revenue came slightly lower to $19.3 billion, down 9% from the same period the previous year.
Analysts had predicted $21.4 billion as per S&P Capital IQ. The decline in earnings came after the company experienced a 13% reduction in vehicle delivery in 2022. It also saw its position as the world’s leading electric vehicle maker slipping to China’s BYD.
Public political activity has been another significant concern that has raised tensions regarding Elon Musk. Some of the criticisms include being an ally of President Donald Trump and his appointment as the head of Doge. Consequently, European sales have declined. It has been reported that there are internal fears that Musk is increasingly distancing himself from the day-to-day running of Tesla.
Tariff Risks Loom Amid Trade War Pressure
Tesla cautioned that such trade tensions can increase manufacturing costs despite all its cars being manufactured in the United States. The company risks facing disruptions arising from tariffs because it sources its parts internationally.
Tesla, in its filing, remarked that new tariffs would affect it more in its energy segment than in its vehicle segment. It also stated that efforts are being made to find ways to stabilize matters and guarantee a healthy future for all divisions.
The operating margin in the first quarter was at 2.1%, down from 5.5% in the Q1 of the previous year, meaning that the firm’s operating profits are on the decline. At the same time, Musk’s conflict with Peter Navarro, a trade policy architect. The EV maker is trying to regain its pace by introducing a revised Model Y and a new promised affordable car. However, the general market situation is unpredictable.
Bitcoin Holdings Steady as Crypto Exposure Remains Unchanged
However, due to macro pressure, Tesla has remained adamant about its Bitcoin investment. By April 2025, the firm possess 11,509 BTC, which makes it the fifth-largest public company that owns crypto assets. MicroStrategy, Marathon Digital, Riot Platforms, and CleanSpark rank the highest.
Bitcoin declined by 11.7% in Q1, therefore cutting the fair value of crypto merchandise in Tesla to $951 million from the previous $1.076 billion. The steep decline can be attributed to the new FASB rules that make it obligatory to value digital assets each quarter.
Bitcoin was trading at $95,017 on Wednesday after rising by 9.75% this week. This followed Trump’s earlier dismissal of the idea that he would fire Fed Chairman Jerome Powell and shift on the tariffs on China.
