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Tesla’s Bitcoin Investment Made Them More Profit Than All Their Car Sales In 2020

by : Cameron Frew on : 20 Feb 2021 16:47
Tesla's Bitcoin Investment Made Them More Profit Than All Their Car Sales In 2020PA Images

Tesla’s investment in Bitcoin has made the company more profit than all of their car sales in 2020. 

Elon Musk’s electric car giant bought $1.5 billion of Bitcoin earlier in February, sending the cryptocurrency to an all-time high. This week, its market cap topped $1 trillion after gains of more than 60%. That’s more valuable than Mastercard and Visa combined.

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Defending the company’s purchase, with some believing the market to be overly volatile and creating a bubble of Bitcoin, Musk tweeted: ‘Having some Bitcoin, which is simply a less dumb form of liquidity than cash, is adventurous enough for an S&P500 company.’

Rising Tesla Share Price Creates Army Of Self-Named 'Teslanaires'PA Images

Currently, one Bitcoin equals more than $56,000. If Tesla still holds the same amount it held on January 31, its gains stand at around $930 million, as per The Times. Last year, the company made around $72 million in profit from its sales.

Tesla will also accept Bitcoin as a form of payment for their products in the ‘near future… subject to applicable laws and initially on a limited basis.’

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Amid reports major US bank Morgan Stanley is looking to make a significant investment in Bitcoin, billionaire Tyler Winklevoss also tweeted: ‘If you are a company CEO and thinking about adding #Bitcoin to your balance sheet you still have the opportunity to be an early adopter. But not for long.’

BitcoinPA Images

While having an extended infancy throughout the 2010s, Bitcoin is being taken more seriously as a form of currency with each passing week. Just recently, Jay-Z and Twitter CEO Jack Dorsey pledged $23.3 million to help develop its profile and promote it.

Commenting on the $1 trillion cap, Simon Peters, a cryptocurrency analyst at eToro, told The Independent: ‘Despite being criticised only this week as a bubble waiting to burst and an economic sideshow, it has yet again proved its detractors wrong… today’s milestone demonstrates bitcoin’s growing power as it looks to disrupt the traditional financial landscape.’

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Cameron Frew

After graduating from Glasgow Caledonian University with an NCTJ and BJTC-accredited Multimedia Journalism degree, Cameron ventured into the world of print journalism at The National, while also working as a freelance film journalist on the side, becoming an accredited Rotten Tomatoes critic in the process. He's now left his Scottish homelands and taken up residence at UNILAD as a journalist.

Topics: News, Bitcoin, cryptocurrency, Elon Musk, Now, Tesla, US

Credits

The Times and 1 other
  1. The Times

    Tesla makes more money on bitcoin than on cars

  2. The Independent

    BITCOIN’S MARKET VALUE TOPS $1 TRILLION FOR FIRST TIME IN ITS HISTORY