Tesla Apparently Makes More From Bitcoin Than It Does From Selling Its Own Cars

Bitcoin accounted for nearly a quarter of the company's first-quarter profits.

Grow Your Business, Not Your Inbox

Stay informed and join our daily newsletter now!
News Writer
2 min read

Electric vehicle manufacturer Tesla earned more from trading Bitcoin than it did from selling its vehicles in the first quarter of 2021, according to the Wall Street Journal

The news comes after Tesla released its first-quarter results on Monday. Although the company's revenue of $10.4 billion and adjusted earnings of 93 cents a share beat Wall Street expectations, the company's windfall profits have been partly attributed to its sale of the cryptocurrency

Related: Tesla Is Facing an Unlikely Competitor in the Electric Vehicle Market

Tesla reportedly sold a portion of the approximately $1.5 billion worth of Bitcoin that it purchased in February, adding $101 million to its net income. As the Journal points out, that accounted for about a fourth of the company's profits — around $438 million — in the first quarter. 

In addition, the company made $518 million from selling regulatory credits to other auto makers in an effort to help them meet emission mandates. That alone made up most of Tesla's pretax income of $533 million. 

Citing a JPMorgan Chase analyst, CBS News further notes that Tesla's core business of selling cars and solar panels, in fact, lost $25 million in the first quarter — a drop that was worse than what most experts predicted. 

In recent months, Tesla has been facing increasing competition from other automakers in the electric vehicle market. Though the company was responsible for 80% of electric car sales in the U.S. last year, Electrek — a blog that covers the electric vehicle market — predicted that Tesla's share of the market in the U.S. could fall below 50%

More from Entrepreneur
Our Franchise Advisors are here to help you throughout the entire process of building your franchise organization!
  1. Schedule a FREE one-on-one session with a Franchise Advisor
  2. Choose one of our programs that matches your needs, budget, and timeline
  3. Launch your new franchise organization
Make sure you’re covered if an employee gets injured at work by
  • Providing us with basic information about your business
  • Verifying details about your business with one of our specialists
  • Speaking with an agent who is specifically suited to insure your business
Make sure you’re covered for physical injuries or property damage that occur at work by
  • Providing us with basic information about your business
  • Verifying details about your business with one of our specialists
  • Speaking with an agent who is specifically suited to insure your business

Latest on Entrepreneur