Tesla Just Took Another $112M Bitcoin Hit — And Still Won’t Sell

TLDR

• Tesla kept its 11,509 BTC unchanged for nearly four years, buying or selling nothing in Q2
• Bitcoin dropped 14% during the quarter, falling from ~$83,000 to ~$58,000, triggering a $112M after-tax loss
• Revenue beat estimates at $28.2B vs. $26.4B expected, but adjusted EPS of $0.33 missed the $0.55 forecast
• Vehicle deliveries hit 480,126, up ~25% year-over-year, one of Tesla’s strongest quarters by volume
• Free cash flow was negative $1.1B as Tesla funded AI, robotaxi, and Optimus robot projects

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Tesla reported a $112 million after-tax loss on its Bitcoin holdings in the second quarter of 2026, as the cryptocurrency fell sharply during the period. The company kept its reserve of 11,509 BTC untouched, continuing a pattern that has held since 2022.

JUST IN: Tesla reports a $112 MILLION loss on its Bitcoin holdings but held all 11,509 $BTC untouched through Q2.

The company has not sold a single coin since 2022 despite $BTC dropping 14% during the quarter.

Meanwhile, free cash flow turned negative at minus $1.1 BILLION,… pic.twitter.com/qtDzXDhHoW

— Coin Bureau (@coinbureau) July 22, 2026

Bitcoin started the quarter near $83,000 and dropped to around $58,000 by late June. That decline reduced the reported value of Tesla’s crypto position under current accounting rules, which require companies to record gains and losses at market prices each quarter.

By the time Tesla released its results, Bitcoin had recovered to roughly $65,840. That rebound did not affect the quarterly loss, as the figure is locked to the price at the end of the reporting period.

Tesla, Inc., TSLA

Tesla adopted updated crypto accounting standards from the Financial Accounting Standards Board in 2024. Under those rules, the $112 million is a mark-to-market loss, not an old-style impairment charge. The company had recorded a $173 million digital-asset loss in Q1 2026 under the same framework.

Bitcoin Holdings: A Four-Year Holding Pattern

Tesla first bought Bitcoin in February 2021, disclosing a $1.5 billion purchase in an SEC filing. The company briefly let U.S. customers buy vehicles with Bitcoin before CEO Elon Musk suspended the option in May 2021 over concerns about fossil fuel use in mining.

In the second quarter of 2022, Tesla sold about 75% of its holdings, converting roughly $936 million into cash. Musk said at the time the move was about strengthening the company’s cash position during COVID-related uncertainty in China, not a lack of confidence in Bitcoin.

Since that sale, Tesla has held the remaining 11,509 BTC through multiple price cycles, including Bitcoin’s fall below $16,000 in late 2022. At the post-earnings price of $65,840, the position was worth around $758 million. Tesla gave no indication it plans to buy more or reduce its holdings.

Mixed Earnings: Revenue Up, Profit Under Pressure

Tesla’s core business delivered uneven results. Revenue came in at $28.2 billion, beating analyst estimates of around $26.4 billion and rising from $22.5 billion a year earlier.

Adjusted earnings per share landed at $0.33, short of the $0.55 analysts had expected. Net income was $1.11 billion, slightly below the $1.17 billion Tesla reported in Q2 2025.

Vehicle deliveries reached 480,126 for the quarter, up roughly 25% from the same period last year. Automotive gross margin, excluding regulatory credits, came in at 16.3%, up from 15% a year earlier but below the 19.2% posted in Q1 2026.

Free cash flow was negative $1.1 billion. Tesla ended the quarter with about $43.5 billion in cash and investments, with spending continuing across AI infrastructure, manufacturing, robotaxis, and the Optimus humanoid robot program.

The Bitcoin loss added a volatile element to the results but did not represent a cash outflow, as Tesla still holds the same number of coins.