At the start of this month, Elon Musk’s giant e-car company, Tesla, invested in Bitcoin and officially joined the cryptocurrency market. It is argued by Wedbush Securities that Tesla managed to earn over $1 billion as a result of the investment. This is shocking, to say the least, considering that this revenue was generated in less than a month.
Moreover, it was also implied that the Tesla company is ascending into a path where more revenue will be generated from Bitcoin and cryptocurrency investments, rather than the profits produced from selling cars and generating profit in the year 2020.
The year 2020 can be depicted as a hard time for the global economy and all the businesses affiliated with it. However, this was not the case with Elon Musk’s e giant, Tesla. Surprisingly, Tesla disproved all critics and odds by generating a profit of $721 million, in addition to $31.5 billion as the total revenue of the year. This is a shocking difference in comparison to the previous year, as, in 2019, the company indicated a loss of $826 million.
As a result of these accomplishments, Tesla’s value in the stock market was raised by 200% in the year 2020. In fact, due to these rapidly rising projections, ARK, an asset management company, has predicted that Tesla’s stock will rise by $22,000 in the year 2024. With that said, to ensure the meeting of that benchmark, Tesla will have to lower its costs, construct factories more efficiently, along with disassociating itself with ride-hailing networks that threaten the interests of the company.
Despite these high projections in the year 2020, the recent Bitcoin investments are said to be even more profitable. Nevertheless, Elon Musk’s Tesla is not the only stakeholder benefiting from these actions and associations. In fact, since the purchase, the value of Bitcoin has risen to a high value of $57,553 in the market, which can be regarded as an all-time high for the cryptocurrency. It is stated that the value rose by 48%, simply since Tesla invested $1.5 billion in Bitcoin currency.
These steps by Tesla can alter the way companies view cryptocurrency. Implying how more companies might invest in Bitcoins and leave behind the world of central bank currencies.