Tesla Retains Bitcoin Holdings as Musk Reduces DOGE Focus

Tesla maintains its Bitcoin holdings amid CEO Elon Musk’s reduced commitment to DOGE, which has caused a share price increase. Q1 results reflect lower revenues and net income but are buoyed by the cryptocurrency market’s recent rebound. Musk is reallocating his time more towards Tesla as he scales back his work at DOGE.

Tesla has retained its Bitcoin holdings in the first quarter of 2025, while CEO Elon Musk indicated he would reduce his involvement with the Department of Government Efficiency (DOGE). His statement led to a 5.4% increase in Tesla’s share price to $250.80 during after-hours trading on April 22, following a 4.6% rise earlier in the day, as reported by Google Finance.

The company’s Q1 results revealed revenues of $19.34 billion, missing Wall Street estimates by 7.85%, and reflecting a 9.2% decline compared to the same quarter last year. Concurrently, Tesla’s net income plummeted to $409 million, marking an 80.8% drop quarter-on-quarter and a 70.5% decrease from Q1 2024.

Tesla’s digital asset value fell by 11.61%, from $1.076 billion to $951 million, coinciding with an 11.56% price drop in Bitcoin, which reached $82,514 during this period, according to CoinGecko.

A recent rule from the Financial Accounting Standards Board enables public companies to report their cryptocurrency assets at market value, unlike previous regulations that only allowed loss reporting unless the crypto was sold. Consequently, Tesla’s Bitcoin holdings, unchanged since June 30, 2022, are currently valued at over $1.07 billion, based on data from Bitcoin Treasuries.

During the earnings call on April 22, Musk affirmed his intent to reduce his focus on DOGE, stating, “Starting probably next month, May, my time allocation to DOGE will drop significantly.” He mentioned he would continue to dedicate a couple of days weekly to DOGE as long as required to maintain anti-fraud measures in place during his tenure.

Following Musk’s announcement, Tesla shares increased by 5.4% in after-hours trading, corroborating a 4.6% rise during the trading day to approximately $237. Despite these gains, Tesla has seen a year-to-date share decline of over 37%, attributed to falling sales, Musk’s political activities, and ongoing economic uncertainties related to tariffs instituted by former President Trump.