Tesla’s relationship with Bitcoin has been nothing short of a rollercoaster — one that began with optimism and ended in missed opportunity.
In early 2021, the electric carmaker shook the financial world by announcing a $1.5 billion investment in Bitcoin. The news sent BTC soaring past $47,000, signaling a major shift in how institutions viewed crypto. Unlike MicroStrategy — the first to add BTC to its books — Tesla was a global brand, and its entry was seen as validation.
Elon Musk, the company’s CEO, had already been hyping crypto on Twitter. From adding “#bitcoin” to his bio to pushing Dogecoin memes, Musk had become an accidental market mover. Tesla doubled down by allowing car buyers to pay in BTC — another first for a major manufacturer.
But by May 2021, the party was over. Tesla halted Bitcoin payments, citing concerns about the energy usage of BTC mining — particularly fossil fuels like coal. Musk hinted payments could resume if 50% of Bitcoin mining used clean energy. Though that threshold has arguably been met, Tesla hasn’t reopened the crypto checkout.
Tesla also began selling its Bitcoin. First, it offloaded 10% to “prove liquidity.” Then came the blow in July 2022: it dumped 75% of its remaining BTC, selling 29,060 coins at an average of $32,209 — a move that now looks like a blunder. Those coins would be worth nearly $2.7 billion today, or over $3.1 billion at Bitcoin’s latest all-time high.
As a result, Tesla’s rank among corporate BTC holders has plummeted. With only 11,509 BTC remaining, it’s now sixth — far behind players like Strategy and Galaxy Digital.
Meanwhile, Tesla’s Q1 2025 earnings showed no further BTC activity — but investor concerns are focused elsewhere. Car sales are down 20% year-over-year, and profits have plunged by 70%. Musk has promised to refocus on Tesla and step back from his role in Trump’s Department of Government Efficiency.
Since 2022, Musk has gone radio silent on Bitcoin. Once seen as a crypto champion, his silence now speaks volumes — and with Tesla stock down over 32% in 2025, his pivot away from digital assets might be one of his costliest missteps yet.
