Tesla already made about $1 billion in profit on its bitcoin investment; on track to make more profits from bitcoin than from selling EV cars in all of 2020

According to analyst estimates, Tesla has made about $1 billion in profit on its bitcoin investment. That means the world’s largest electric car company is on a trajectory to make more from its Bitcoin investments than profits from selling its EV (electric vehicle) cars in all of 2020,” Daniel Ives, an analyst at Wedbush Securities said in a note published Saturday.

As we reported early this month, Tesla disclosed in a regulatory filing with the U.S. Securities and Exchange Commission (SEC) on February 8 Monday that it bought $1.5 billion worth of bitcoin. The world’s largest electric automaker said it bought the bitcoin for “more flexibility to further diversify and maximize returns on our cash,” according to the filing. In addition to the purchase, Tesla said it would start accepting payments in bitcoin in exchange for its products as well.

Ives did not elaborate on he arrived at the $1 billion profit. However, according to data from cryptocurrency site CoinDesk, bitcoin’s price has gone from an intraday high of $34,793.45 on Jan. 31 to an intraday high of $57,487.03 on Feb. 20, the day Ives published his note.

That’s a rise of about 65%, which would put the profit on Tesla’s $1.5 billion bitcoin investment at around $975 million. Based on Monday’s intraday high of $58,332.36, that profit would be over $1 billion.

“While the Bitcoin investment is a sideshow 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,” Ives said.

Tesla CEO Elon Musk is a proponent of digital currencies. In a series of tweets, Musk said he recently said bitcoin is “is simply a less dumb form of liquidity than cash.”

Musk also admitted that he’s an engineer and not an investor. He added that he doesn’t even own any publicly traded stock besides Tesla. He said, “Bitcoin is almost as bs as fiat money.”

“To be clear, I am *not* an investor, I am an engineer. I don’t even own any publicly traded stock besides Tesla. However, when fiat currency has negative real interest, only a fool wouldn’t look elsewhere. Bitcoin is almost as bs as fiat money. The key word is “almost.”

To be clear, I am *not* an investor, I am an engineer. I don’t even own any publicly traded stock besides Tesla.

However, when fiat currency has negative real interest, only a fool wouldn’t look elsewhere.

Bitcoin is almost as bs as fiat money. The key word is “almost”.

— Elon Musk (@elonmusk) February 19, 2021