This week Tesla was in the news again, but not for a new model or for achieving the long-awaited real autonomous driving: the news was that the company had invested $1.5 billion in bitcoin.
It is not known exactly how that investment was made, but it is known that it was made throughout the month of January 2021. That indicates that Tesla could own right now as much as 49,342 bitcoin, and given that its value has skyrocketed after that announcement (and it was already carrying 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 move by Elon Musk and Tesla represents a real boost for the cryptocurrency, which for almost a decade has been defenestrated by the financial and business world.
The latest moves, however, show a remarkable change of attitude in part of that segment. PayPal was probably the first major culprit in that turn of events after announcing in October that it would start allowing cryptocurrency trading and even payments with tokens such as bitcoin.
The latest moves, however, show a remarkable change of attitude in part of that segment. PayPal was probably the first major culprit in that turn of events after announcing in October that it would start allowing cryptocurrency trading 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 skyrocketed and in just three weeks doubled its value and went from recovering the historical record of 20,000 dollars to over 40,000.
These movements have attracted many small and large investors, and Tesla's investment movement - with Musk unleashed on social networks supporting this cryptocurrency and others such as Dogecoin - has only accelerated these rises, which now bring bitcoin close to the amazing barrier of $50,000, something unthinkable less than a year ago, when a bitcoin reached below $5,000.
An investment that (for now) is working out great for Tesla.
For the moment there is no specific data on how this investment of 1.5 billion dollars has been made by Tesla, which as we said in the report to the US authorities has only indicated that this investment was made in January.
This information, however, may allow estimates to be made of what Tesla may have achieved in this regard. Depending on when it made that investment in January and the value of a bitcoin, Tesla would currently own between 36,945 and 49,342 bitcoin (if in the latter case we take into account its lowest price in January) right now.
The profitability of these cryptocurrencies also varies depending on when the investment was made: on January 1 a bitcoin was slightly below 30,000 dollars, but its value has fluctuated considerably throughout the month and on the 9th it reached a partial record of just over 40,000 dollars.
Thus, the data reveals that the return right now could be between 14.7% (worst case) and 53.2% at best.
The returns on investment are therefore exceptional, and as one Twitter user pointed out, in just two weeks the growth has been so striking that it could have made the return greater than Tesla earned in the last 12 years selling its electric cars.
