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.

By Justin Chan

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%.

Justin Chan

Entrepreneur Staff

News Writer

Justin Chan is a news writer at Entrepreneur.com. Previously, he was a trending news editor at Verizon Media, where he covered entrepreneurship, lifestyle, pop culture, and tech. He was also an assistant web editor at Architectural Record, where he wrote on architecture, travel, and design. Chan has additionally written for Forbes, Reader's Digest, Time Out New YorkHuffPost, Complex, and Mic. He is a 2013 graduate of Columbia Journalism School, where he studied magazine journalism. Follow him on Twitter at @jchan1109.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Business Ideas

70 Small Business Ideas to Start in 2025

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2025.

Business News

'Positive Momentum': Inflation Hit a Four-Year Low in April. Here's What It Means for Interest Rate Cuts.

The U.S. Bureau of Labor Statistics released its April consumer price index report on Tuesday.

Business News

McDonald's Is Hiring Hundreds of Thousands of Employees. Here's Why.

The company also said it will open 900 new McDonald's restaurants in the U.S. within the next two years.

Leadership

Everyone's Preaching 'Workforce Efficiency' — Translation: More Layoffs. Here's a Better Solution

Across-the-board job cuts make a business less efficient. To make smarter workforce decisions, companies should connect the dots between people and business results.

Franchise

This College Student Pitched His Parents a Business Idea. Now, He Runs a $7 Million Ice Cream Brand.

What started in a garage has scaled to 17 locations thanks to smart tech, strong culture and made-to-order desserts.

Branding

Why Strong Leadership Today is Narrative Warfare — And Speed is Your Sharpest Weapon

In today's high-stakes market, CEOs are judged not by how they respond to crises, but by how quickly—and proactively—they move before anyone else does.