Tesla Inc. retained its Bitcoin holdings during the second quarter, absorbing $112 million in paper losses as the value of its digital assets declined. The company held $674 million in digital assets as of March 31, a drop of 14.24% from the previous quarter and 45% year-over-year. Despite the losses, the Elon Musk-led firm did not liquidate any of its cryptocurrency investments, which are grouped under the digital assets line item in its financial statements.

On-chain analytics firm Arkham Intelligence reports that Tesla's stockpile consists solely of 11,509 BTC, unchanged from the prior quarter. The 14.24% decline in the value of these assets aligns with Bitcoin's price movement during the second quarter. Tesla stands as the twelfth-largest corporate holder of Bitcoin, trailing Strategy Inc., which holds a stockpile worth over $55 billion.

Financial Performance

Beyond its cryptocurrency holdings, Tesla reported second-quarter revenue of $28.24 billion, beating analyst estimates. The company noted that it reached $100 billion in trailing twelve-month revenue for the first time in its history during the quarter. However, earnings per share fell short of market expectations.

Asset Valuation

The following table details the changes in Tesla's digital asset holdings:

Tesla previously accepted Bitcoin as payment for vehicles but halted the practice due to concerns regarding the energy consumption associated with Bitcoin mining. The company does not provide a specific breakdown of its cryptocurrency holdings in its regulatory filings.

Tesla's Chief Financial Officer indicated that the company anticipates its operating expenses, which are largely driven by research and development, to continue growing in 2026 and beyond. The disclosure was made during a conference call, highlighting the company's ongoing commitment to innovation and development expenditure.

Financial Outlook

The projection focuses on the sustained increase in costs associated with research and development activities. This trend is expected to persist beyond the current fiscal year, influencing the company's overall operating expense structure.

The statement underscores the strategic priority Tesla places on advancing its technology and product capabilities through continued investment in R&D.