Tesla and Semler face Bitcoin volatility risks

Tesla holds 11,509 Bitcoin as of March 31, 2026, with the position valued at $1.31 billion as of September 30. This holding generated an $80 million profit in the third quarter of 2025 because Bitcoin price increased by roughly 5%. The company reported $28.236 billion in second-quarter revenue, which beat the $26.4 billion consensus estimate. However, Tesla net income fell 37% year-on-year to $1.37 billion because R&D and AI spending drove operating costs up by 50%. I see the Bitcoin strategy as a secondary driver for a company managing massive scaling costs for the Tesla Semi.

The updated FASB rules, which take effect for fiscal years starting after December 15, 2024, require companies to report crypto assets at fair value. This means Tesla records changes in fair value in net income every reporting period rather than using the previous cost-less-impairment model. This change forces transparency on price moves. Tesla reports its Bitcoin gains under "other income."

Semler Scientific pivots from medical devices

Semler Scientific abandoned its focus on artery health to become a bitcoin-first company. The company previously relied on the QuantaFlo device, which licenses technology to insurers to detect artery blockages. This single product provided high gross profit margins exceeding 90%. In May 2024, the company adopted Bitcoin as its primary treasury reserve asset. Eric Semler, the chairman, intends to use cash flow from operations to purchase Bitcoin.

The company now claims to be the fourth-largest bitcoin treasury in the United States. This strategy changes the risk profile for investors who previously bought the stock for medical technology exposure. The stock price now correlates with Bitcoin price fluctuations. This pivot follows a period where Medicare money for artery disease detection began to dry up. I would call this a high-risk gamble that replaces a predictable medical revenue stream with crypto volatility.

Musk faces government conflict accusations

Elon Musk manages the Department of Government Efficiency (DOGE) while running businesses that interact with federal agencies. Musk directs companies like SpaceX and Tesla which receive billions in government contracts. SpaceX received more than $15 billion in federal contracts and seeks more from NASA and the Department of Defense. Musk also owns Starlink, which the White House uses for expanded technology needs.

Ranking Member Connolly and other Oversight Democrats lead investigations into Musk’s conflicts of interest. They claim Musk redirects taxpayer dollars to fund his own financial interests while managing his private business empire. Investigators sent letters to the Department of Labor and the National Labor Relations Board regarding DOGE activities. They specifically look at whether DOGE staff attempted to exfiltrate data or obstruct oversight. Musk told Sean Hannity he would recuse himself if a conflict exists, but critics argue the lack of enforcement makes these guardrails ineffective.

The National Highway Traffic Safety Administration has investigated Tesla’s autopilot since August 2021. A report from April stated the autopilot design led to avoidable crashes. Will the Department of Government Efficiency recommendations to cut agency staff affect these specific investigations? Does the dual role of a special government employee effectively bypass standard ethics requirements?