TSLA Stock Price Outlook as Stronger Than Expected Q1 Earnings Mask $173M Bitcoin Loss

Tesla (NASDAQ: TSLA) posted stronger-than-expected Q1 2026 earnings, driving a slight 0.28% gain in TSLA stock price by market close on April 22. The company’s gross profit reached $4.72 billion during the quarter, a 16% year-over-year increase. However, the company posted a $173 million loss from its Bitcoin holdings following a notable drop in BTC price between January and March 2026.

Tesla Posts $173M Bitcoin Loss Amid Strong Q1 Earnings

While Tesla’s 16% jump in gross profits surprised Wall Street, total revenues during the quarter came in at 422.38 billion, which was weaker than the $22.6 billion estimate. However, the company also outlined an earnings per share of 41 cents, which was higher than Wall Street expectations. Meanwhile, net income came in at $491 million.

The release of these financial results drove gains for the TSLA stock price, which bounced by 3% shortly after the release. However, remarks by Tesla CEO Elon Musk nearly wiped out all of these gains.

While speaking to investors, Musk revealed that Tesla was “working on a lot of ambitious projects.” He further emphasized that the company is exploring artificial intelligence (AI) and investing heavily in self-driving vehicles.

The company’s strong profits during the quarter also masked a crucial crypto aspect in the earnings report. During the quarter, Tesla did not sell any Bitcoin, and its holdings remained at 11,509. However, because of BTC’s price drop between January and March, it had an unrealized loss of $173 million.

Considering that Bitcoin price is recovering, Tesla might reduce this loss in Q2 or even record an unrealized profit if the rally continues.

TSLA Stock Forms Bull Flag as Breakout Rally Looms

The daily chart shows that TSLA stock has created a bull flag pattern. The pole was formed following a massive 21% surge in price within 13 trading days to $409. By Wednesday’s market close, Tesla was trading lower at $387.

The trend reversal from $409 to $387 created a falling parallel channel that represents the pattern’s flag. This suggests that the reversal could be a cool-off, allowing this pattern to mature before the next move upwards.

The RSI shows that buyers began to take profits after the TSLA stock price reached overbought levels. The reversal shows that buyers exited the market after the 21% rally earlier this month. If these buyers can come back and aid a breakout from the descending channel, TSLA could soar by another 21% towards $487.

A recent Tesla stock analysis by CoinGape also noted that a falling wedge pattern may push the price to $500. The surge could be influenced by the recent rise in the S&P 500 index to all-time highs. With the market moving on from the tensions in the US-Iran war, demand for risk assets could aid Tesla’s stock recovery.

However, it is still likely that TSLA stock price fails to break resistance and loses support at the lower trendline. This could invalidate the bullish thesis and kickstart a strong downward reversal.