Tesla To Make More Money From Its Bitcoin Investments
Tesla To Make More Money From Its Bitcoin Investments
February 23, 2021
Tesla To Make More Money From Its Bitcoin Investments
Tesla To Make More Money From Its Bitcoin Investments
February 23, 2021

Daniel Ives, an analyst at Wedbush Securities, said that Tesla is about to make more money from its Bitcoin investments than profits from selling its electric vehicle cars in all of 2020.

It has been reported that Ives has calculated that Tesla has made “roughly $1 billion” in the aftermath of its $1.5 billion Bitcoin investment. He estimated Tesla’s Bitcoin profits in an investor note.

Ives said:

“Tesla is on a trajectory to make more from its Bitcoin investments than profits from selling its electric vehicle cars in all of 2020.” 

However, Ives noted that Tesla’s move is likely to affect other public companies.

He added:

“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.”

Likewise, the analyst expects just a small part of the market to follow the trend due to regulatory uncertainty issues.

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He said:

“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.” 

The report said that Tesla officially announced its $1.5 billion Bitcoin investment as part of its filing with the US Securities and Exchange Commission on February 8. It still remains unclear how much Bitcoin Tesla bought and at what price, as the company did not disclose this information in the filing.

Thus, in late January, Tesla reported its first full-year profit by stating that the company earned $721 million in 2020 after an $862 million loss in 2019.

Source: Cointelegraph


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Ishita Bora

Ishita Bora is a Senior Content Creator at Digital Notice Media Labs with an experience of 1 year. She has completed her Master's Degree in Language and Linguistics in 2019 from Gauhati University, India. Her interest lies in blockchain technology and cryptocurrency space. She loves writing about blockchain and other blockchain-related articles.