Bitcoin $BTC.X ( ▲ 3.22% ) can be a gift or a headache for Tesla $TSLA ( ▲ 1.71% ). Right now, it’s looking like the latter. A new accounting rule that kicked in this year requires Tesla to include unrealized gains and losses on its bitcoin holdings in its quarterly results which means the recent crypto slump is about to show up in its earnings.
Analyst Troy Teslike estimates Tesla is staring at an unrealized loss of more than $300 million in Q4 from its 11,509 bitcoin.
That alone would trim roughly $0.10 from its GAAP earnings per share. If bitcoin falls further, say toward $60,000, the unrealized loss could swell past $600 million, dragging EPS by about -$0.19.
For context, Wall Street expects Tesla to report around $1.6 billion in net income and GAAP EPS of $0.37 for the quarter. Layer a crypto-driven hit on top of Tesla’s existing margin pressures, and bitcoin’s volatility becomes one more wildcard in the company’s already complicated earnings story.