Analyst says Tesla made a Profit of US$1-Billion after Buying Bitcoin
In an investor note, an analyst named Daniel Ives of private investment firm Wedbush Securities has said that Tesla, the American electric car giant, has made a massive profit of US$1-billion after changing its company guidelines and buying US$1.5-billion worth of Bitcoin. He went on to say that the electric company is going to make “more from its Bitcoin investments than profits from selling its electric vehicle cars in all of 2020.”
The analyst believes that Tesla’s Bitcoin move is likely to affect the investment decisions of many other public companies. He said:
“While the Bitcoin investment is a side show 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.”
However, he also added that due to regulatory uncertainty issues, less than 5% of public companies are expected to take Tesla’s path. This inhibition of the public companies will go away only when “more regulatory goalposts are put in place around the crypto market”, leading to “more mainstream adoption in 2021.”
In the last 7-days, the BTC price against the US Dollar jumped by around 15%.
Tesla had reported in late January 2021 that the company earned US$721-million in 2020 after making a loss of around US$862-million in 2019.
