Tesla confirms no Bitcoin sales in Q1 despite market selloff

Tesla kept its entire 11,509 Bitcoin intact through the first quarter of 2026 despite a brutal crypto market selloff, the company reported in its earnings release today.

Bitcoin lost about 22% of its value during those three months, its steepest first-quarter drop in eight years, which pushed Tesla’s digital asset holdings from roughly $1 billion down to $786 million by the end of March.

The drop was caused by a mix of geopolitical tensions, a hawkish stance from the Federal Reserve, and overall risk-off sentiment, resulting in heavily negative investment product outflows in January and February.

By late April, Bitcoin had recovered much of its decline. The digital asset changed hands at $78,000, boosting Tesla’s holdings back to around $900 million.

Elon Musk’s electric vehicle maker bought 43,200 Bitcoin for $1.5 billion in February 2021. In 2022, the company sold about 75% of its holdings near the lows. The remaining 11,509 coins have sat untouched since January 2025, a period that included Bitcoin’s surge past $126,000 in September 2025 and the subsequent drop through Q1 2026.

Tesla ranks eleventh among public companies holding Bitcoin on their balance sheets, well behind Strategy, which has made Bitcoin accumulation essentially its entire corporate identity.

Tesla Q1 revenue rises 16% to $22 billion as free cash flow surges

Tesla posted Q1 revenue of $22.38 billion, a 16% increase year-over-year, driven by growth in automotive revenue to $16.2 billion and strong expansion in services and Full Self-Driving subscriptions, which reached 1.28 million. Free cash flow rose to $1.4 billion, largely outperforming expectations, while net income increased modestly to $477 million.

Despite these gains, Tesla’s core EV business showed signs of weakness, with deliveries of 358,023 vehicles falling short of expectations even as production exceeded 408,000 units. This suggests softer demand and a growing reliance on pricing, services, and software to support revenue.

While performance has improved compared to last year, it lags behind the company’s last three quarters. Tesla is now entering a capital-intensive phase, planning $25 billion in spending on AI and robotics in 2026, with management signaling negative cash flow in the periods ahead.