202122 Feb
Tesla has made about $1 billion in profit on its bitcoin investment, analyst estimates
Type
General News
Companies
Source
Cnbc
Summary

Tesla, led by Elon Musk, confirmed that it purchased about $ 1.5 billion in bitcoin in January and expects to start accepting it as a payment in the future. Tesla has made roughly $1 billion in paper profits from its investment into bitcoin, according to Daniel Ives, analyst at Wedbush Securities. The 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," Ives estimated in a note published Saturday. Earlier this month, the U.S. electric carmaker disclosed in a Securities and Exchange Commission filing that it had bought $1.5 billion worth of bitcoin for "more flexibility to further diversify and maximize returns on our cash." The purchase was made some time in January, the company said without disclosing when or at what price it bought bitcoin for.

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