Elon Musk announces Tesla will "stop producing Model X/S" to focus on robot production; Q4 Bitcoin sales resulted in a paper loss of $239 million.

Tesla’s latest financial report shows that the company maintained 11,509 Bitcoins in Q4 2025, but due to a significant drop in the cryptocurrency’s price, it recognized an accounting loss of approximately $239 million.
(Background: Tesla “continues to hold Bitcoin” in Q4, with Bitcoin holdings worth 38% more than the financial report, and stock price soaring 11%)
(Additional context: Why is the newly effective U.S. cryptocurrency accounting standard a big positive for BTC?)

Table of Contents

• Bitcoin Investment History
• Accounting Standard Changes, Overall Q4 Financial Performance
• Announcing the Discontinuation of Model X/S to Focus on Robots

Tesla remained steady in its cryptocurrency strategy in Q4 2025, continuing to hold 11,509 Bitcoins. However, as Bitcoin’s price fell from about $114,000 to around $88,000 during the quarter, the electric vehicle giant incurred an after-tax impairment loss of approximately $239 million on its digital assets.

Based on the current market price of Bitcoin at about $89,000, the total value of Tesla’s Bitcoin holdings is roughly around $1 billion.

Bitcoin Investment History

Starting from February 2021—when the company invested about $1.5 billion to purchase 43,200 Bitcoins, shocking the global financial markets. Subsequently, management sold a small portion of holdings to test liquidity.

However, during the 2022 crypto winter, Tesla made a major move to liquidate, selling about 75% of its holdings near the bottom of the Bitcoin bear market. Since that large sale, the company’s Bitcoin position has remained at its current level, with no significant changes.

Accounting Standard Changes, Overall Q4 Financial Performance

For Q4, Tesla reported revenue of $24.9 billion, slightly below Wall Street analysts’ expectations of $25.1 billion. However, its profitability was impressive, with an adjusted EPS of $0.50, beating the market consensus of $0.45.

Encouraged by the earnings report, Tesla’s stock rose 3.4% in after-hours trading.

Notably, starting in 2025, the Financial Accounting Standards Board (FASB) officially implemented ASU 2023-08, which requires companies holding crypto assets to measure them at fair value, with price fluctuations directly reflected in the income statement. This means Bitcoin’s market price volatility will immediately impact a company’s book profits and losses, no longer limited to “impairment only when prices fall.”

The $239 million loss Tesla recognized this quarter is a direct result of this new accounting standard—Bitcoin’s price dropped nearly 23% from its high during Q4, directly impacting the financial figures.

Announcing the Discontinuation of Model X/S to Focus on Robots

In addition to Bitcoin news, Tesla’s recent earnings call revealed surprising information. Elon Musk announced that Tesla will cease production of the flagship luxury Model S/X vehicles, with the production lines repurposed to produce the Optimus robot. Previously, Musk estimated that humanoid robots would eventually reach a 1:1 ratio with Earth’s population, requiring mature production lines to further advance this goal. He stated that Tesla will become a company focused on automation and robotics:

It’s time to end the Model S and Model X programs and give them a dignified retirement. The last production day will be 1/28. I feel a bit sentimental, but this is necessary because Tesla’s future must be built on automation and AI.