Tesla’s Bitcoin Investment Generated $1 Billion Profit, Says Analyst

Tesla could generate more profits from its Bitcoin investment than from selling electric cars, according to Wedbush Securities analyst.

February 22, 2021 | AtoZ Markets – Tesla, the US giant of electric cars, has already made huge gains from its investment in Bitcoin (BTC): a profit of $1 billion, a recent report reveals.

An analyst at Wedbush Securities, a US-based private investment firm, calculated that Tesla would have earned “approximately $1 billion ” from its $1.5 billion investment in BTC. Analyst Daniel Ives estimated Tesla’s profits in an investor note on Saturday.

After Bitcoin became a $1 trillion asset thanks to the parabolic growth of recent months, Ives said:

“Tesla could get more profits from its Bitcoin investment than from selling electric cars throughout 2020.”

Tesla Bitcoin Investment Will Influence Others

Ives is confident that Tesla’s investment will push other publicly traded companies to do the same:

“While investing in Bitcoin is a sideline for Tesla, it was clearly a winning choice – this decision could, over the next 12-18 months, trigger a ripple effect for many publicly listed companies.”

Nonetheless, Ives fears that regulatory uncertainties could hold back some companies and prevent them from taking the plunge:

“We expect less than 5% of public companies to follow this path, at least until the regulatory framework for the crypto market is clarified, which is starting to gain more widespread adoption in 2021.”

Tesla confirmed its $1.5 billion investment in Bitcoin on February 8, via a document filed with the United States Securities and Exchange Commission. However, we don’t know when the company bought BTC and at what price.

Given that in January Bitcoin fluctuated between $29,000 and $37,000, with $1.5 billion Tesla could have bought between 40,000 and 51,000 BTC. Currently, the price of BTC is around $54,000, up 15% from a week ago.

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