Tesla made $1b profit on Bitcoin investment, analyst
22 Feb 2021
Electric car firm Tesla has seen huge gains from its Bitcoin investment, making up to $1 billion in profit already.
This is according to a new report out on Monday.
A Wedbush Securities analyst stated that Tesla has made “roughly $1 billion” following its $1.5 billion investment in Bitcoin – the world’s largest cryptocurrency by market capitalisation.
Analyst Daniel Ives estimated Tesla’s Bitcoin profits within an investor note published over the weekend, CNBC reports.
Amid Bitcoin’s surge to become a $1 trillion asset, Ives stated: “Tesla is on a trajectory to make more from its Bitcoin investments than profits from selling its electric vehicle cars in all of 2020.”
The analysts added that the move by Tesla will likely impact other public companies: "While the Bitcoin investment is a side show for Tesla, it’s clearly been a good initial investment and a trend we expect could have a ripple impact for other public companies over the next 12 to 18 months.”
Nevertheless, Ives predicts only a small part of the market to follow suit due to regulatory uncertainty:
“We still expect less than 5% of public companies will head down this route until more regulatory goal posts are put in place around the crypto market, which is clearly starting to gain more mainstream adoption in 2021.”
At the time of writing, Cointelegraph reports, Bitcoin was trading at $56,239, up around 15% over the past week, as per data from the Cointelegraph Bitcoin price index.
At the end of January, Tesla reported its first full-year profit, adding that the firm earned $721 million last year following an $862 million loss in 2019.
Dogecoin now available in 1,800 ATMs across U.S.
02 Mar 2021
Bitcoin on cusp of mainstream adoption, say analysts
01 Mar 2021
More Australian investors opt for crypto over precious metals
26 Feb 2021
Ethereum to settle $1.6trn in transactions in Q1 2021
25 Feb 2021
Bitcoin whales offload 140k BTC in February
24 Feb 2021Back to Blog