At the end of Q3, Tesla reported earnings of approximately $1.26 billion from Crypto assets. Despite the $1.31 billion decreases, the amount has been written off as "Bitcoin-related impairment."
For Tesla's bitcoin holdings, the company took a $51 million impairment charge in the third quarter.
According to its Q3 earnings presentation, Elon Musk's electric vehicle company did not purchase any digital assets.
Accounting rules for digital assets require a company to report an impairment if the value decreases during the quarter, but an increase in value does not appear as profit on the balance sheet.
Around $43,800 was achieved by the flagship Crypto in the third quarter, a gain of roughly 30%.
Tesla bought $1.5 billion worth of bitcoin in February. In Q1, the company sold 10% of its bitcoin position, which boosted Q1 earnings by $272 million. Also, in Q2, Tesla did not buy or sell any bitcoin.
Across the board, FactSet estimates Tesla's adjusted Q3 earnings per share to be $1.86, compared with $1.62 expected. Revenue in the quarter came in at $13.76 billion, compared with the expected $14 billion.
While previous Tweets from Elon Musk have demonstrated his preference for the meme coin posting images of the Doge mascot, it appears that the company remains committed to Bitcoin. Musk confirmed in May that the company will not sell its Bitcoin reserves. Tesla has also announced that it will accept Bitcoins as payment.
Meanwhile, the electric car maker reported a GAAP net income of $1.62 billion for the quarter, the second time it has exceeded $1 billion. Tesla had a net income of $331 million a year ago.
As a result of the company's automotive business, gross margins increased by 30.5%, and overall gross margins increased by 26.6%, both of which are records for the last five quarters.