U.S. markets closed
  • S&P 500

    3,811.15
    -18.19 (-0.48%)
     
  • Dow 30

    30,932.37
    -469.64 (-1.50%)
     
  • Nasdaq

    13,192.35
    +72.92 (+0.56%)
     
  • Russell 2000

    2,201.05
    +0.88 (+0.04%)
     
  • Crude Oil

    61.66
    -1.87 (-2.94%)
     
  • Gold

    1,733.00
    -42.40 (-2.39%)
     
  • Silver

    26.70
    -0.98 (-3.56%)
     
  • EUR/USD

    1.2088
    -0.0099 (-0.81%)
     
  • 10-Yr Bond

    1.4600
    -0.0580 (-3.82%)
     
  • GBP/USD

    1.3922
    -0.0091 (-0.65%)
     
  • USD/JPY

    106.5500
    +0.3200 (+0.30%)
     
  • BTC-USD

    47,253.50
    -211.20 (-0.44%)
     
  • CMC Crypto 200

    912.88
    -20.25 (-2.17%)
     
  • FTSE 100

    6,483.43
    -168.53 (-2.53%)
     
  • Nikkei 225

    28,966.01
    -1,202.26 (-3.99%)
     

Tesla on Track to “Make $1 Billion” in Bitcoin Profits

Yaёl Bizouati-Kennedy
·2 min read
BRITTA PEDERSEN/POOL/EPA-EFE/Shutterstock / BRITTA PEDERSEN/POOL/EPA-EFE/Shutterstock
BRITTA PEDERSEN/POOL/EPA-EFE/Shutterstock / BRITTA PEDERSEN/POOL/EPA-EFE/Shutterstock

Tesla, which revealed it bought $1.5 billion worth of Bitcoin earlier this month, is “on a trajectory to make more from its Bitcoin investments than profits from selling its EV (electric vehicle) cars in all of 2020,” according to a note by Daniel Ives, an analyst at Wedbush Securities, reported by CNBC.

See: Bitcoin’s Value Skyrockets to $1 Trillion as Price Hits $54,000
Find: Elon Musk, World’s Wealthiest Person, Touts Bitcoin Over Cash

Ives estimates that Tesla has made roughly $1 billion in paper profits from its investment into Bitcoin, according to CNBC.

In addition to the Bitcoin investment, Tesla will begin accepting the cryptocurrency as a form of payment for its products in the near future, according to a Tesla Securities and Exchange Commission filing.

See: 6 Reasons Tesla Might Be the Stock You Need to Buy
Find: Why Some Money Experts Believe In Bitcoin and Others Don’t

“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,” according to CNBC’s report on Ives’ note.

Bitcoin broke the $50,00 ceiling last week, reaching $58,000 over the weekend before dipping back to $53,000 this morning.

CoinMarketCap valued the crypto at around $1 trillion last week, a huge milestone. Bitcoin has added more than $415 billion of value in 2021 alone, Bloomberg reports.

See: Long-Term Investors Hold Most of the Bitcoin Supply
Find: Mark Cuban – “Bitcoin is Exactly like the Dot Com Bubble”

Musk defended Tesla’s Bitcoin purchase last week, tweeting that Bitcoin “is simply a less dumb form of liquidity than cash.” However, he tweeted again on Saturday, saying that Bitcoin and Ethereum “do seem high lol.”

Tesla (NASDAQ: TSLA), which became the newest S&P 500 member when it joined the index in December 2020, missed the consensus earnings-per-share estimate for the fourth quarter (as reported by Seeking Alpha) of $1.03, reporting $0.80 EPS, according to its earnings statement. However, the company beat the revenue estimate of $10.38 billion, reporting $10.74 billion in revenue, a 46% increase year over year.

More from GOBankingRates

This article originally appeared on GOBankingRates.com: Tesla on Track to “Make $1 Billion” in Bitcoin Profits