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Tesla May Have Already Made More In Profits From Bitcoin Than Electric Vehicles

Benzinga2021-02-17

Tesla Inc made waves earlier this month by announcing it had purchased $1.5 billion in Bitcoin. The move sent the cryptocurrency higher and has also turned in some impressive profits for the electric vehicle maker.

What Happened:Bitcoinhit $50,000 for thefirst time everon Tuesday, continuing a 2021 rally that has sent the largest cryptocurrency higher on increased adoption and public companies placing bets on the future.

Tesla purchased$1.5 billion in Bitcoin in the month of January, although the company hasn't revealed its average purchase price of how many Bitcoin it holds.

Gains From Bitcoin:In the month of January, Bitcoin traded between $29,333 and $37,020. A $1.5-billion purchase could have gotten Tesla anywhere between 37,020 and 51,137 Bitcoin. The average would come out to 44,079 Bitcoin.

Based on these scenarios, the value of Tesla’s Bitcoin is worth the following with the current Bitcoin price of $48,450.

  • 51,137 Bitcoin: $2.48 billion, profit of $0.98 billion
  • 44,079 Bitcoin: $2.14 billion, profit of $0.64 billion
  • 37,020 Bitcoin: $1.79 billion, profit of $0.29 billion

Why It’s Important:Tesla’s Bitcoin purchase created validation of the cryptocurrency for some and is seen as a stepping stone for other publicly traded companies to also make a similar move. The gain on the Bitcoin purchase is also notable as it may be more than Tesla made from its entire business in fiscal 2020.

Tesla reported its first profitable year in fiscal 2020 with $721 million, which came after a loss of $862 million in fiscal 2019. Tesla reported only a couple of quarterly profits prior to fiscal 2020.

Given the years of net losses from its business, it’s possible Tesla made more in profit off of its single $1.5 billion Bitcoin purchase than it did off the profits from its cars in the last decade.

Time will tell how many Bitcoin Tesla owns and if the company is planning to hold for the long haul or will sell some for profits.

TSLA Price Action:Shares of Tesla were down 2% to $796.22 on Tuesday.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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Comment34

  • rofl
    ·2021-02-18
    Nice
    Reply
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  • Bigray
    ·2021-02-18
    Let’s go $TSLA
    Reply
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  • TradingNewbie
    ·2021-02-18
    Can consider buy TSLA on dips. 
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  • Glenna
    ·2021-02-18
    it is possible and Elon musk has a great mind
    Reply
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  • Rhythm88
    ·2021-02-18
    Time will tell! Chances are this will push Teslahigher once there is another big company jumping into the Bitcoin wagon. 
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  • YiiYii
    ·2021-02-18
    Oohhh 
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  • jkleiderc
    ·2021-02-17
    nice
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  • Wallstrtbets
    ·2021-02-17
    Unbelievable!
    Reply
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  • Hangry
    ·2021-02-17
    Tesla ftw
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  • MohdShan
    ·2021-02-17
    Price been falling last few days. Maybe many against buying of bitcoins 
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    • FionaC
      ?
      2021-03-27
      Reply
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    • Glenna
      should be temporary i thunk
      2021-02-18
      Reply
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  • BabyHuatHuat
    ·2021-02-17
    Best time for tesla
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    • Smelly Tiger
      Hellooooo
      2021-03-08
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    • Hangry
      Agree
      2021-02-17
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  • JaydenOh
    ·2021-02-17
    All in tesla 
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  • Poggki
    ·2021-02-17
    More tesla???
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  • JoeK
    ·2021-02-17
    It ain't earning until they dump it. Then their rep will go down the drain. Not gonna happen
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    • s777
      buy buy buy
      2021-02-17
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  • JGWee
    ·2021-02-17
    Y
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  • Deont
    ·2021-02-17
    To the moon 
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  • 8488940
    ·2021-02-17
    Gain is less than 1 percent of market cap...
    Reply
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  • criously
    ·2021-02-17
    Wow
    Reply
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  • CH88
    ·2021-02-17
    Lol very true. Shortist will say now they earn from bitcoins. Previously say they earn from EV credits. Haha.
    Reply
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  • Donovon
    ·2021-02-17
    Buying BTC is a right move 
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    • Donovon
      Bought both and holding
      Can look at MSTR too
      2021-02-18
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    • HorngWey
      Buy tesla and BTC
      2021-02-18
      Reply
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