- Tesla has made about $1 billion on its investment, says an analyst.
- Following its investment in Bitcoin, the car production company is on the verge of making more profit.
Tesla made $1 billion from investing in Bitcoin
Tesla took a huge bold step by investing $1.5 billion in bitcoin when it appeared others were still testing the waters regarding crypto adoption. However, the step taken by Tesla now appears to be a profitable one as a new report revealed it has allegedly made about a $1 billion return on its investment.
An analyst revealed that the investment of the electric car maker in the flagship cryptocurrency is likely to yield greater returns than the whole profits it made selling cars in 2020. Wedbush Securities estimated that the car company had made about $1billion in profit following its billion-dollar investment.
Tesla set to make more money from Bitcoin
Daniel Ives, the Managing Director at Wedbush, commented that the car maker is on the path of making more profits on its investment than it made selling cars in 2020. He noted that the move by Tesla is going to influence other large institutions to follow suit in the coming months.
However, Ives believes that not all companies will embrace the move due to regulatory concerns. He noted that only about 5% of the companies might follow after the Elon Musk-owned company step into Bitcoin unless there is a major regulation in the crypto market.
In February, the company revealed in its filing with SEC that it bought $1.5 billion worth of Bitcoin. However, the price of the coins at the time of purchase and the exact quantity purchased is unknown.
Nevertheless, Bitcoin experienced an extreme surge when the news of the investment hit the market thus driving the price to a new ATH of $48,000 in less than 24 hours. The investment might have given Bitcoin more traction and credence as some major banks and companies also took a plunge into the crypto world.