The price of Bitcoin and Tesla shares have both soared since President Donald Trump’s election win in November. Meanwhile, thanks to an accounting rule change, the digital currency’s rise has provided a boost to the electric vehicle manufacturer’s bottom line.
Tesla’s digital assets have carried a value of $184 million on the company’s balance sheet since the end of 2022, but that number jumped to $1.08 billion when Elon Musk’s company reported earnings Wednesday. The sudden increase is due to the fact that, in December, new accounting rules called for crypto holdings to be measured at fair value on the balance sheet, with changes reflected in net income at the end of each period.
