Tesla has made more money in two weeks with bitcoin than after twelve years making cars
It is not known exactly how this investment was made, but it was made throughout the month of January 2021. This indicates that Tesla could own up to 49,342 bitcoin right nowAnd given that its value has skyrocketed after that announcement (and it already had a splendid 2021), the benefit for Tesla is incredible: with that investment, it has earned in 10 days what it earned in 10 years with its cars.
Bitcoin to infinity and beyond
The movement of Elon Musk and Tesla represents a whole accolade for the cryptocurrency, which for almost a decade it has been ousted for the financial and business world.
The latest movements, however, show a notable change in attitude in part of that segment. PayPal was probably the first major responsible for this turn of events after announcing in October that would begin to allow the sale of cryptocurrencies and even payments with tokens such as bitcoin.
Others have joined that fever and have caused an absolutely spectacular rise in the value of bitcoin, which soared and in just three weeks it doubled in value and went from recovering the historical record of $ 20,000 to over 40,000.
Those moves have attracted many investors small and large, and Tesla’s investment move – with a Musk untied in social networks supporting this cryptocurrency and other as Dogecoin– has only accelerated these increases, which now bring a bitcoin closer to the staggering $ 50,000 barrier, something unthinkable less than a year ago, when a bitcoin fell below $ 5,000.
An investment that (for now) is fabled for Tesla
There is currently no specific data on how that investment of 1,500 million dollars by Tesla has been made, which as we said in the report for US authorities It has only indicated that this investment was made in January.
Bitcoin has a market cap of $860B that now exceeds Tesla at $815B.
This makes sense because Tesla made more profit in owning Bitcoin for 10 days than selling cars for 10 years.
– Chadford Whitmore VI (unPunchableFaceVI) February 10, 2021
This data, however, can allow estimates to be made about what Tesla may have achieved in that regard. Depending on when you made that investment in the month of January and the value of a bitcoin, Tesla would currently be owner of between 36,945 and 49,342 bitcoin (if in the latter case we take into account its lowest price for the month of January) right now.
The profitability of these cryptocurrencies also varies depending on the time the investment was made: on January 1, a bitcoin was slightly below $ 30,000, but its value has fluctuated considerably throughout the month and on the 9th it reached a partial record of just over $ 40,000 .
Thus, the data reveals that profitability could now be between 14.7% (in the worst case) and 53.2% in the best of cases.
The returns on investment are therefore exceptional, and as one Twitter user pointed out, in just two weeks growth has been so striking that it could have made profitability more than Tesla earned in the last 12 years selling their electric cars.
That surprising conclusion is not so much if we consider that Tesla has lost money always except for a 2020 that was exceptional. Musk’s company reached a net loss of 2,240 million dollars in 2017, for example, and that situation and serious problems with the Model 3 even led Musk to try sell your company to Apple (or so he says).
The truth is that the company managed to overcome that pothole and is now undoubtedly one of the automotive groups most promising of the current scene, Y its stock market valuation is exceptional although there are still doubts about whether this company is something bubbly.
Be that as it may, investing in bitcoin is paying off very well, at least for now. The growth in the value of bitcoin has sent profitability skyrocketing, and while Tesla made a lot of money in 2020 at last ($ 1.994 billion), its long history of losses keeps its balance sheet very negative.
Accumulated losses amount to $ 2.65 billion, and even in the worst case, investing with bitcoin would have already earned almost 221 million dollars without lifting a finger and in just two weeks.
Obviously everything could change at any moment: The volatility of bitcoin and the rest of cryptocurrencies is well known, so what today is fabulous profitability could turn into a disastrous loss of your financial “cushion”. It’s clear that Musk is confident in the future of bitcoin, and for now that investment (or gamble) is paying off.