According to the research report of the US-based analyst company Wedbush Securities, Elon Musk’s Tesla already profited more from its most-recent $1.5 billion BTC splurge than its total automotive sales from last year.
While this piece of news may indeed sound excellent for Tesla, the benefit of said crypto purchase goes both ways. Immediately following Musk’s company’s sizeable purchase last month, BTC’s price surged by more than 8.5% – notably breaking $57,000 per BTC just 12 days after.
Dan Ives, an analyst of Wedbush, notes that Tesla could have already profited more than $1 billion from its crypto investment, assuming that it did not sell any of it in January. Retrospectively, Tesla racked up ‘only’ $721 million of profit from its total car sales for the year 2020.
Ives also appeared on CNBC’s Squawk Box show wherein he stated that Tesla’s foray into BTC isn’t just for fun or fad; it is more than likely a long-term strategy reinforced by intensive business studies. Ives then predicted for Tesla to double down on its latest crypto investment.
Considering Musk’s wide-ranging influence and global name value, Ives believes that about 3% to 5% of all public companies would do their best to follow suit on Tesla’s BTC investment for the next 12 to 18 months. However, unlike Tesla – whose purchase could be for transaction purposes – Ives says that public companies’ inevitable foray into BTC could be exclusively for investment.