Elon Musk-led Tesla Inc. recorded an $80 million profit from its Bitcoin holdings in the third quarter of 2025.
The electric vehicle maker’s latest financial report, released on October 22, shows that the company benefited from the rising value of Bitcoin without trading any of its crypto assets.
According to the filing, Tesla continues to hold 11,509 Bitcoin, now valued at approximately $1.31 billion. This marks an $80 million increase from $1.23 billion in the previous quarter, driven solely by market appreciation rather than any new purchases.
Revised Accounting Rules Boost Reported Gains
Earlier this year, Tesla began applying fair-value accounting standards to its digital assets. These rules require companies to report cryptocurrencies at their current market prices rather than historical costs.
The accounting shift allowed Tesla to recognize the $80 million gain as “other income”. It also made the third quarter the company’s strongest period for Bitcoin-related revaluation since 2021.
No Change in Holdings Since 2022
Tesla’s current holdings position it as the world’s eleventh-largest corporate holder of Bitcoin. The automaker ranks below MicroStrategy, Galaxy Digital, and Block but above Hut 8 Mining and several smaller institutions.
Tesla has not added to or reduced its Bitcoin portfolio since early 2022. The company previously sold a small portion to test liquidity before classifying the cryptocurrency as a strategic treasury asset.
Despite price volatility in recent years, Tesla has maintained a steady stance on digital assets. Its management has repeatedly described Bitcoin as “a liquid alternative to cash,” underscoring a long-term approach to holding crypto on its balance sheet.
Rising Costs Weigh on Quarterly Profits
Beyond crypto gains, Tesla’s financial results showed mixed performance. Total revenue climbed to $25.18 billion, up from the same quarter last year. Automotive revenue rose 6% to $21.2 billion.
However, net income dropped 37% year-on-year to $1.37 billion, or 39 cents per share. The company cited lower vehicle prices and a sharp rise in operating expenses as key factors.
Operating costs increased by more than 50%, driven by substantial investment in artificial intelligence and research projects. These expenditures led to a decline in overall profitability, despite an increase in revenue.
Long-Term Crypto Commitment Amid Market Recovery
The latest report marks Tesla’s second straight quarter of Bitcoin gains, reflecting a broader market recovery in 2025. The company’s consistent crypto position stands in contrast to its cautious approach toward new purchases.
Tesla first entered the crypto market in February 2021, when it acquired $1.5 billion worth of Bitcoin. That move made it one of the earliest major U.S. corporations to hold digital assets on its balance sheet.
Related Developments: SpaceX Bitcoin Movement
Separately, a wallet linked to SpaceX, another company led by Elon Musk, transferred around $268 million in Bitcoin earlier this week. According to Arkham Intelligence, the transfers were made to two new addresses after a three-month pause.
On-chain analyst Ai Yi suggested the transactions likely involved internal fund management rather than asset liquidation.
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