Tesla Excludes Crypto Losses to Boost Non-GAAP Profit by 12%

Tesla reported a $900 million Non-GAAP net profit, more than double its GAAP net profit of $400 million, by excluding a $97 million cryptocurrency loss. The company previously reported gains from rising crypto asset values as part of its Non-GAAP earnings. The SEC scrutinizes supplementary earnings metrics to ensure consistency and may examine Tesla's reporting if Bitcoin prices surge next quarter.

Tesla Inc. reported a $900 million Non-GAAP net profit, more than double its GAAP net profit of $400 million, by excluding a $97 million cryptocurrency loss in its latest earnings report [1]. The electric vehicle maker used accounting adjustments to boost its non-GAAP earnings by approximately 12 percent, offsetting what would have been its weakest quarterly performance in years [1].

Tesla previously included gains from rising crypto asset values as part of its Non-GAAP earnings. In late 2024, when Bitcoin prices surged, Tesla reported a $600 million benefit and included it in its non-GAAP earnings [1]. However, the company concealed a $97 million loss from cryptocurrency holdings in its latest earnings report, raising questions about the consistency of its reporting practices [1].

The U.S. Securities and Exchange Commission (SEC) scrutinizes supplementary earnings metrics to ensure consistency and may examine Tesla's reporting if Bitcoin prices surge next quarter [1]. In April 2024, the SEC reprimanded Bitcoin miner Marathon Digital Holdings Inc. for omitting the value increase of its crypto assets from adjusted earnings [1].

The Financial Accounting Standards Board (FASB) issued a new rule in December 2023 requiring companies to report crypto assets at fair value, reflecting their market volatility [1]. Tesla's chief financial officer, Vaibhav Taneja, acknowledged the impact of the accounting change during an analyst call, stating that the company expects increased volatility in its other income due to the new mark-to-market standard for Bitcoin [1].

Tesla declined to comment on the specific treatment of the crypto loss in its latest earnings report. The inconsistency in treatment could invite scrutiny from regulators if market trends reverse, said Olga Usvyatsky, an accounting analyst [1].

Companies are permitted to use non-GAAP metrics to clarify underlying business performance, excluding irregular or non-operating costs. However, the SEC warns firms against presenting figures some critics label "earnings before bad stuff" [1].

The SEC postponed its decision on several digital asset ETF filings from Grayscale, Canary Capital, and Bitwise, extending the deadline to June 10 and 11 [3]. The agency seeks more time to conclude whether to approve the applications, following Paul Atkins assuming the position of SEC Chair [3].

References:
[1] https://www.malaymail.com/news/money/2025/04/25/elon-musks-tesla-quietly-left-off-us97m-bitcoin-loss-in-earnings-report/174433
[2] https://malaysia.news.yahoo.com/elon-musk-tesla-quietly-left-032018317.html
[3] https://www.mitrade.com/insights/news/live-news/article-3-780703-20250425