In a notable turn of events, tech billionaire Elon Musk and Tesla have reflected on their involvement in Bitcoin, experiencing both regret about late purchasing and hasty selling decisions.
Recent financial reports indicate that Tesla is currently holding $1.24 billion in Bitcoin. This figure comes at a time when the cryptocurrency market has reached impressive heights, yet it also highlights the significant opportunity Tesla missed, amounting to nearly $4 billion in potential profits due to an early sale of its holdings.
Bitcoin recently achieved an all-time high of $120,000, with trading valued at around $118,000. At first glance, Tesla’s investment might appear to be a success. However, the broader context reveals a more complex situation.
Tesla’s journey with Bitcoin began in February 2021 when the company invested $1.5 billion, acquiring approximately 40,000 to 44,000 Bitcoins. Just over a year later, in July 2022, the company decided to sell more than 75% of its Bitcoin holdings, realizing $936 million with a profit of about $64 million. At the time, this decision may have seemed prudent, aiming to secure profits in a volatile market. However, looking back from a peak in 2025, it stands out as a regrettable move.
Calculating the effects of this decision, Tesla sold approximately 32,000 Bitcoins. Based on the current price of $118,000 per Bitcoin as of July 27, 2025, those sold Bitcoins would now be valued at approximately $3.71 billion. This unrealized profit could have fully funded the construction of Tesla’s Gigafactory in Germany.
Interestingly, CEO Elon Musk previously remarked that he felt he was “too late” to invest in Bitcoin. Now, Tesla’s experience serves as a reminder of the risks involved in timing the cryptocurrency market, reinforcing critics’ arguments about Bitcoin’s volatility and its place as a speculative asset rather than a stable alternative to traditional currencies.