Tesla’s non-GAAP crypto adjustment raises a timing question

Tesla's adjustment for crypto losses eliminates the impact of the new FASB crypto accounting standard. But that’s not what happened when there were gains.

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Apr 28, 2025

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In its earnings report for the quarter ending on March 31, 2025, Tesla (Ticker: TSLA) introduced a brand-new non-GAAP adjustment for digital assets (gain) loss, net of tax, that strips out the impact of the adoption of FASB’s accounting for crypto assets, ASU 2023-08. The adjustment improved the Q1 2025 Net Income Attributable to Common Shareholders of $409 billion by $97 million, or about 23%, and increased the Q1 2025 diluted EPS of $0.12 by $0.03.

After removing digital assets losses and compensation expenses, Tesla reported Adjusted EPS of $0.27 for Q1 2025 - a miss compared to the analysts’ consensus estimate of $0.39.

Source: SEC filings

The new FASB standard requires companies to remeasure certain digital assets at fair value each reporting period, with gains and losses flowing through the income statement, increasing the volatility of the earnings…

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Tesla’s non-GAAP crypto adjustment raises a timing question

Tesla's adjustment for crypto losses eliminates the impact of the new FASB crypto accounting standard. But that’s not what happened when there were gains.

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