Tesla has scored profits worth $1 billion on its bitcoin bet, a Wedbush analyst estimates
Teslahas made roughly $1 billion on its bitcoininvestment, according to Wedbushanalyst Dan Ives.
- The electric-vehicle maker is set to make more from bitcoin than profit from car sales in 2020, he said.
- Wedbush expects less than 5% of public companies to head down the same route.
"Based on our calculations, we estimate that Tesla so far has made roughly $1 billion of profit over the last month from its Bitcoin investment given the skyrocketing price of Bitcoin, which now tops a trillion of market value," Ives wrote in a note published Saturday.The company "is on a trajectory to make more from its Bitcoin investments than profits from selling its EV cars in all of 2020," he added.
Tesla made its bitcoin purchase in January, when the price was fluctuating between $30,000 to $40,000, but the company didn't specify when, or at what price, it bought the token. It remains unclear whether Tesla has sold any bitcoin."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," Ives said in the note. But the analyst expect less than 5% of public companies to head down the same route until more clarity around crypto regulations are determined.
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