Tesla’s foray into Bitcoin once captivated markets. But years later, it serves more as a cautionary tale than a success story.
In February 2021, the company revealed a $1.5 billion Bitcoin investment. BTC surged to record highs as the move validated the asset in mainstream finance. Tesla’s adoption was bigger news than MicroStrategy’s — after all, it was a household name.
Elon Musk’s tweets added fuel to the fire. A single emoji or hashtag from him could spark a rally. When Tesla announced that customers could use Bitcoin to purchase vehicles, it marked another adoption milestone for crypto.
But in May 2021, Tesla pulled the plug on BTC payments, citing concerns about Bitcoin’s environmental footprint. Musk called for cleaner mining practices, setting a 50% renewable threshold. Still, Bitcoin payments never returned — despite signs that sustainability metrics have improved.
Tesla later sold 10% of its BTC to showcase liquidity. Then came the big selloff in July 2022: 75% of its stash liquidated at around $32K per coin. That move, now viewed as shortsighted, left billions on the table. Had it held, those coins would now be worth over $2.7 billion.
Tesla’s BTC holdings have dwindled to 11,509, dropping it to sixth place among publicly traded companies. Once ahead of the pack, it’s now behind players like Riot and CleanSpark.
The company hasn’t touched its BTC reserves in recent quarters, but the spotlight has shifted. Sales have plummeted 20% and profits by 70% year-over-year. Musk has promised to devote more time to Tesla, stepping back from his government duties.
Despite Trump’s crypto-friendly stance, Musk hasn’t tweeted about Bitcoin in over two years. Once seen as a bullish force, he’s become largely irrelevant to the conversation.
With Tesla stock down over 30% in 2025, Musk’s silence on crypto — and the company’s early exit from Bitcoin — may go down as one of the biggest what-ifs in corporate crypto history.
