Daily Market Recap - Tesla May Have Made A Billion-Dollar Profit On Bitcoin

According to Wedbush analysts, Tesla has already made a billion-dollar gain on its Bitcoin investment, which was unveiled earlier this month.

“According to our calculations, we estimate that Tesla has made nearly a billion dollars in profits in the past month from its investment in Bitcoin due to the surge in prices (of cryptography),” the U.S. broker said in a research note on Monday.

“To put things into perspective, this means that Tesla is on the verge of making more profit from its investment in Bitcoin than from the sale of its electric vehicles over the whole of 2020,” Wedbush said in his note.

While acknowledging that this investment is a “non-core” business for the California-based manufacturer, the broker believes that this successful deal could pave the way for other such transactions by major listed companies.

Wedbush says he expects the widespread adoption of virtual currency this year, which will cause “seismic” upheavals in the blockchain, payments, banking, and semiconductor markets in the coming years, he warns.

For the record, Tesla said earlier this month that it has invested $1.5 billion in Bitcoin and plans to begin accepting digital currency as a form of payment for its vehicles “in the near future”.

The cryptocurrency reached a record high of about $58,330.5 dollars as a result of this information and now shows an increase of more than 83% compared to the beginning of the year. BTCUSD is trading around the $50,500 mark at the time of writing.

(Chart Source: Tradingview 03.03.2021)

Despite the seemingly spectacular returns estimated by Wedbush, Teslas stock price fell sharply on Wednesday, down 4.84 percent on the day. Shares in the company have shed roughly 25 percent over the past month as headwinds from rising US treasury yields have put the brakes on the red hot US equity market.

Disclaimer: This material has been created for information purposes only. All views expressed in this document are my own and do not necessarily represent the opinions of any entity.