Tesla has made more profit from Bitcoin investments in a month than it will from electric cars for the whole of 2020, according to analysts.
Wedbush’s calculations suggest that Tesla has pocketed a cool $1 billion from its $1.5 billion buy in so far, adding:
“While the Bitcoin investment is a sideshow 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.”
Tesla’s Bitcoin Profits: Doing the Math
Previously, estimates from Yahoo! Finance had suggested that Tesla had bought its stash of Bitcoin for an average price of $34,200. That would suggest it is currently holding about 43,859 BTC in reserve.
When Bitcoin’s price hit its high point of $58,330.57 over the weekend, the collective value of Tesla’s BTC would have ballooned to $2.56 billion — meaning Wedbush’s numbers add up.
Of course, we don’t know exactly how much Bitcoin that Tesla actually does own — and that’s because the company hasn’t disclosed the exact date it purchased the crypto on.
But it’s likely that Tesla’s purchases began in early January. A post written on Jan. 2 by a Reddit user claiming to be an insider at the company said:
“I am a software dev working at R&D at Tesla in California, over the past 72 hours our company bought 24701 BTC at an average price of $33,142.”
At the time, this post was met with skepticism and derision from other users.
Elon Musk: BTC and ETH ‘Seem High’
Musk raised eyebrows over the weekend when he said that “BTC & ETH do seem high” — with Bitcoin racing its way to $58,000 and Ether breaking $2,000.
This could have contributed to a downturn in crypto prices.
Binance CEO Changpeng Zhao tweeted back, writing: “Lol, you said this about TESLA stock, before it went through the roof.”
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