An analyst from Wedbush Securities stated that the whole year of 2020 selling cars had not generated enough profit for Tesla compared to what they are getting as a return on investment from Bitcoin.
According to the latest reports, Tesla has been receiving massive returns from its investment in BTC and reportedly has gained returns of about $1 billion. The analyst says that the value of the investment by Tesla was around 1.5 billion US Dollars which generated a return of about 1 billion US Dollars which means a return of 66.67% in practically no time.
As Bitcoin was in the pursuit of becoming an asset worth $1 trillion, Tesla has the potential of earning more from its Bitcoin investment than it earns out of the sales of its automobiles, as stated by Daniel Ives in the CNBC reports.
According to Ives, this investment by Tesla has been of great significance and is influencing other companies to follow the same path. Tesla made a bold move by investing in Bitcoin, and it was like a side hustle for them, but it paid off far better than expectations and could be more beneficial in the future, but a very few companies would actually follow Tesla’s path because of the uncertainty of Bitcoin in the financial markets and the lack of regulations surrounding it.
On 8th Feb 2021, Tesla disclosed their files to the SEC showing that they have Bitcoin in their balance sheets and officially announced that they had invested $1.5 Billion in the cryptocurrency. This is the only information that Tesla disclosed; it is still not public knowledge of how many Bitcoins did Tesla buy and at what price did they buy them. This information is not included in the reports provided to the SEC.
Tesla invested in Bitcoin in January, and the price of Bitcoin was around $29k to $37k, which means that Tesla had possibly acquired Bitcoins in the range of 40,000-51,000. Bitcoin is currently trading at a price of about $57,000, which means Tesla has gained a huge profit.
Tesla disclosed their annual earnings at $721 million, which are great figures compared to a loss of $862 million in 2019.