The increase followed a recent policy change from the Financial Accounting Standards Board, which mandates that corporate digital asset holdings be marked to market each quarter starting at the beginning of 2025. Before the FASB rule change, companies owning bitcoin had to report their holdings at the lowest value recorded during their ownership, regardless of any subsequent price gain.
Tesla said in its earnings deck that the change resulted in an earnings per share boost of 68 cents in the quarter, and CFO Vaibhav Taneja noted on the earnings call that the net income increase was $600 million.