Tesla Made $1B Profit From Its Bitcoin Buy – Wedbush Securities Analyst

Tesla has been known to make electric cars fitted with futuristic technologies and features which has placed it at the top of this emerging industry. Now, the carmaker is about to make more money from its recent bitcoin investments. The projected amount is expected to be more than the profits the company made from selling its electric vehicles in the whole of 2021, according to an analyst at Wedbush Securities.

Reports state that the electric car giant brand has enjoyed massive profits from its BTC investment after raking in over $1 billion. One analyst at Wedbush Securities, which is a private investment company in the US, has reported these profits in the wake of the $1.5 billion Bitcoin investment it made.

Daniel Ives said that Tesla‘s bitcoin profits were rising when he wrote an investor note on February 20, based on CNBC reports. Amid BTC’s explosive surge to acquire the $1 trillion asset status, Ives commented:

“Tesla is on a trajectory to make more from its Bitcoin investments than profits from selling its electric vehicle cars in all of 2021.”

Teslas investment move may affect other public companies and Ives wrote:

“While the Bitcoin investment is a side show for Tesla, its 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.”

But, the analyst expects that just a small portion of the market will follow this investment trend due to the unresolved regulatory uncertainty issues:

“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 Tesla Revenue

The electric carmaker officially announced its bitcoin investment as part of its filing with the U.S. Securities and Exchange Commission on February 8. It is not yet clear how much Bitcoin Tesla acquired and at what price. The company did not provide this information in its filing.

Bitcoin was trading between $29,000 and $37,000 in January. Thus, it might mean that a $1.5 billion investment translates to between 40,000 and 51,000 BTC. At the time of publication, bitcoin is trading above $55,000, up around 12% in the last seven days based on data from CoinMarketCap.

Tesla reported its first full-year profit in late January, documenting that it earned $721 million in 2021 after recording an $862 million loss in 2019.