Tesla has kept its 11,509 Bitcoin reserve unchanged while recording a $112 million after-tax loss on digital assets during the second quarter.
Summary
- Tesla kept its 11,509 BTC reserve unchanged despite a $112 million after-tax loss.
- Bitcoin’s second-quarter decline reduced the reported value of Tesla’s digital assets.
- Tesla’s revenue beat expectations, but adjusted earnings and free cash flow disappointed.
Tesla’s second-quarter shareholder update showed that the electric vehicle maker neither bought nor sold Bitcoin during the three months ended June 30. The decision extended a holding pattern that began after the company sold most of its original position in 2022.
Bitcoin’s sharp decline during the quarter reduced the reported value of Tesla’s remaining crypto assets. The cryptocurrency traded near $83,000 at the start of the period before falling as low as $58,000 in late June.
By the time Tesla released its results, Bitcoin had recovered to about $65,840. The rebound came too late to reverse the loss recorded for the reporting period because Tesla’s digital assets are measured using their fair value at the applicable reporting date.
Tesla adopted the Financial Accounting Standards Board’s updated crypto accounting standard in 2024. Under those rules, eligible crypto assets are valued at current market prices, with quarterly gains or losses recognized through earnings.
The $112 million figure should therefore be described as an after-tax fair-value or mark-to-market loss, rather than an impairment charge under the accounting model Tesla previously used. The former impairment system generally required companies to record declines while preventing them from recognizing recoveries unless the assets were sold.
Tesla’s Bitcoin reserve remains untouched
Tesla’s reported balance of 11,509 BTC has remained unchanged across recent quarterly disclosures. At Bitcoin’s price of roughly $65,840 following the earnings release, the position was worth about $758 million, although its accounting value depends on the price used at the quarter’s close.
Arkham Intelligence also tracks 11,509 BTC in wallets associated with Tesla, placing the company among the largest publicly traded corporate Bitcoin holders. Tesla’s continued ownership contrasts with its decision to sell about 75% of its holdings during the second quarter of 2022.
The company entered the market in February 2021, when an SEC filing disclosed that Tesla had invested $1.5 billion in Bitcoin under a revised investment policy. Tesla said at the time that the purchase was intended to diversify its cash holdings and provide additional flexibility.
Following that investment, Tesla briefly allowed customers in the United States to buy vehicles with Bitcoin. Chief Executive Elon Musk suspended the payment option in May 2021, citing concerns about the use of fossil fuels in Bitcoin mining and transactions.
Tesla later converted roughly $936 million of Bitcoin into cash during the 2022 sale. Musk attributed the decision to uncertainty over COVID-related restrictions in China and the company’s desire to strengthen its cash position, rather than a loss of confidence in Bitcoin.
Since completing that disposal, Tesla has retained its remaining coins through several large price cycles. Its position survived Bitcoin’s fall below $16,000 in late 2022, the cryptocurrency’s subsequent recovery, and the latest decline toward $58,000.
No statement in Tesla’s second-quarter materials indicated that the company plans to restart Bitcoin purchases or reduce the reserve. Its unchanged balance instead continued the passive approach visible in its disclosures since the 2022 sale.
Tesla had recorded a $173 million after-tax digital-asset loss in the first quarter of 2026, according to its previous earnings report. Bitcoin declined from about $90,000 at the beginning of that period to roughly $68,000 by the end of March, reducing the value assigned to the same 11,509-coin position.
Revenue growth fails to prevent an earnings miss
Tesla’s core business delivered mixed second-quarter results while the Bitcoin loss weighed on its reported numbers. The company generated $28.2 billion in revenue, beating Wall Street’s estimate of approximately $26.4 billion and rising from $22.5 billion a year earlier.
Adjusted earnings came in at $0.33 per share, however, missing analysts’ expectations. Tesla also reported net income of about $1.11 billion, compared with $1.17 billion during the corresponding quarter of 2025.
Vehicle deliveries supported the revenue increase after Tesla handed over 480,126 cars during the quarter. The company’s delivery report put the total about 25% above the year-earlier period and made it one of Tesla’s strongest quarters by vehicle volume.
Profitability remained under pressure despite the sales recovery. Tesla reported an automotive gross margin of 16.3%, excluding regulatory credits, up from about 15% one year earlier but below the 19.2% recorded in the first quarter of 2026.
Heavy spending also pushed Tesla’s free cash flow to negative $1.1 billion, according to its shareholder update. The company ended the quarter with approximately $43.5 billion in cash and investments while continuing to fund artificial intelligence infrastructure, manufacturing projects, robotaxis and the Optimus humanoid robot.
Against those larger expenses, the $112 million digital-asset loss represented one volatile component of Tesla’s results rather than a cash outflow caused by a Bitcoin sale. Tesla’s filings show that the company still owns the same number of coins, leaving the reported value of the position exposed to Bitcoin’s price at future quarter-end dates.
