Tesla Misses Out on Bitcoin Gains by Selling Holdings During Crypto Winter

Tesla sold 75% of its $1.5 billion Bitcoin holdings in 2022 during the "crypto winter," missing out on billions of dollars in potential gains. Bitcoin has since rebounded, rising 80% in the past year to currently trade at $116,000. Tesla's current cryptocurrency holdings stand at $1.24 billion, mostly due to Bitcoin's strong rally. The company's business, struggling with poor electric vehicle sales and consumer backlash, could have used the cash boost from crypto.

Tesla sold three-quarters of its $1.5 billion Bitcoin holdings in 2022, during the crypto market downturn, missing out on potential gains [1]. Bitcoin has since rebounded, rising 80% in the past year to currently trade at around $116,000 [1]. Tesla's current cryptocurrency holdings stand at $1.24 billion, primarily due to Bitcoin's strong rally [1]. While the company's business is struggling with poor electric vehicle (EV) sales and consumer backlash, the gains from Bitcoin have bolstered profitability.

Tesla's EV sales have been declining, with deliveries on track to fall for the second full year in a row [3]. The company's market share in Europe, its weakest major market, has been decreasing, with registrations plunging by 33% during the first half of 2025 [3]. Musk's polarizing politics and the loss of purchase incentives in the US have contributed to the sales slump [3]. Despite these challenges, Tesla's market capitalization remains high, with investors valuing the company based on Musk's vision of a future filled with autonomous vehicles and humanoid robots [3].

Tesla's digital assets, now worth $1.24 billion, could have been worth billions more if the company had held onto its Bitcoin holdings [1]. When Tesla sold its holdings in mid-2022, Bitcoin was trading at around $19,000 [1]. If Tesla had held onto all of its Bitcoin, that stash would be worth roughly $5 billion, based on estimates of how much it bought in 2021, instead of $1.24 billion [1].

While the company's EV business faces numerous challenges, the gains from Bitcoin in the second quarter amounted to $284 million, contributing significantly to Tesla's total net income of $1.17 billion [1]. The gains could have been much greater if Tesla had held onto its Bitcoin holdings during the crypto winter.

References:
[1] https://www.cnbc.com/2025/07/24/tesla-bitcoin-crypto-sale.html
[2] https://www.cnbc.com/2025/07/25/cnbc-daily-open-triple-whammy-for-tesla.html
[3] https://www.bloomberg.com/news/articles/2025-07-24/is-tesla-in-trouble-musk-bets-on-robotaxis-as-tsla-ev-sales-fall