Tesla Sold Bitcoin Too Soon... Missed Out on $4.8 Billion in Potential Profits

Sold 75% of Holdings at the Worst Moment During Q2 2022 Market Crash
Bitcoin Price Surged Over Sixfold After the Sale

"There is yet another disappointing detail hidden within Tesla's investor report."

On July 24 (local time), CNBC, a U.S. economic media outlet, reported that Tesla missed out on billions of dollars in potential profits by selling 75% of its Bitcoin holdings at the worst possible time. The report pointed out that Tesla incurred a massive opportunity cost loss by disposing of 75% of its Bitcoin holdings in the second quarter of 2022, precisely when the market was crashing.

Elon Musk, Tesla's Chief Executive Officer (CEO), was a prominent supporter of Bitcoin until early 2022. He publicly expressed his trust in virtual assets, stating, "I still own Bitcoin, Ethereum, and Doge, and I will not sell." In February 2021, CEO Musk remarked that Bitcoin was a 'better asset' than cash, and Tesla purchased $1.5 billion worth of Bitcoin in early 2021. At the time, Tesla explained that this investment was made based on the long-term potential of digital assets and as a means of diversifying its portfolio.

In mid-2022, the special conditions created by COVID-19 came to an end, and the U.S. Federal Reserve's interest rate hikes further accelerated the rapid contraction of market liquidity. Additionally, as the collapse of Terra-Luna triggered a domino effect in the DeFi industry, Bitcoin plummeted by more than 60% within a year. It is estimated that Tesla sold 75% of its Bitcoin holdings between March and June of that year. In June 2022, the price of one Bitcoin dropped to around $17,700.

In its second-quarter earnings report, Tesla announced that its digital asset holdings increased from $722 million a year earlier to $1.24 billion, thanks to the recent surge in Bitcoin prices. Ironically, after Tesla sold its Bitcoin, the price of Bitcoin rebounded sharply. Over the past year, the price of Bitcoin has soared by 80%, and the current price per Bitcoin has surpassed $119,000. This is more than six times higher compared to the time when Tesla sold off its large Bitcoin holdings. This surge is due in part to the Donald Trump administration's pro-virtual asset stance and its active efforts to ease related regulations.

CNBC estimated that if Tesla had not pressed the sell button at that time, the company's digital assets would now be worth about $5 billion. The $936 million worth of Bitcoin that was converted to cash at the time is now estimated to be worth $3.5 billion (approximately 4.8 trillion won).

CEO Musk has consistently emphasized that Tesla's future depends not on virtual asset investments, but on robotaxis and humanoid robots. While he is seeking breakthroughs in next-generation technologies for Tesla's core business, recent quarterly results show that Bitcoin has actually supported Tesla's profits. CNBC analyzed that second-quarter gains from Bitcoin valuation reached $284 million, accounting for a significant portion of the $1.17 billion in net profit.

In the second quarter of 2025 (April to June), Tesla reported revenue and net profit that fell short of market expectations. Total revenue decreased by about 12% compared to the same period last year, and revenue from the automotive division dropped by 16%. Tesla's stock price has fallen about 25% this year, marking the largest decline among major big tech (large information technology) companies. With both revenue and net profit falling below market expectations and the stock price hitting new lows, Bitcoin played the role of a relief pitcher, partially offsetting these losses.