Bitcoin, Elon Musk, Cryptocurrency, Tesla, Inc. Defends Tesla Bitcoin as Bitcoin Becomes More Lucrative Than Cars
Elon musk defended tesla’s 1.5 billion bitcoin bed as adventurous enough for an s p 500 company and says it’s less dumb than holding cash. Do you think so? Do you agree is uh holding cash? Is safe, less safer than bitcoin? What if something happens to bitcoin tomorrow, we don’t know well welcome back dear friends, this is armin harian from talknews.com. If you are here for the first time, please subscribe to our channel and ring the bell, so you don’t miss my next tesla electric vehicle coverage, as we do here daily and also. I would like to point you to our paid membership joining option for early access to exclusive content. If you are friends interested so elon, musk defended tesla’s 1.5 billion bitcoin bet. After the ceo of major cryptocurrency exchange binance, i called out the billionaire’s support for members dot coin token dot coin having some bitcoin, which is simply a less dumb form of liquidity than cash, is adventurous enough for an s. P 500 company must tweet that, in response to a bloomberg, interview would be nancy’s. Ceo, jean peng zhao, now it looks like bitcoin, is becoming more lucrative for tesla than electric cars at the beginning of february. If you remember tesla’s, bitcoin investment caused a stir. The electric car makers tesla had invested 1.5 million us dollars that could prove to be more profitable than selling cars in the future tesla struck in january on an unprecedented scale and bought bitcoin worth of 1.
5 billion us dollars. At the time. The information was made public via a mandatory disclosure to the u.s securities and exchange commissions, and this is what we’re going to see in a moment in that mandatory disclosure, where tesla basically said why it’s doing that and what it will do with the profits. Now, how many bitcoin did tesla buy tesla invest head investment had caused another rapid increase in the bitcoin price. Since then, the cryptocurrency has only known the way up and is around 51. I think this was few days ago. 51. 400 dollars at the time of uh. Several days i checked uh, i think today, it’s, like 53 000, or something like that. The colleagues from teslaradi took the increase as an opportunity to calculate how the value of the investments has developed for tesla either way. The result is impressive, especially if we look at tesla’s net operating profit from last year for comparison, that was 721 million dollars. Last year in 2021, tesla’s net operating profit was 721 million dollars. The calculation is made more difficult by the fact that tesla has not disclosed the average price of the purchased cryptocurrency, nor how many bitcoins it currently holds. So we don’t know what tesla has bought and how many bought. However, after uh tn, t3 and german news company reports that, after we know the range of fluctuations in prices in january, we can mathematically approximate the values, bitcoin changed hands in january, at prices between twenty nine thousand three hundred thirty, three and thirty, seven thousand twenty dollars.
Assuming an average tesla could have acquired forty four thousand. Seventy nine this way that’s how much tesla’s 1.5 billion investments is worth today at the current bitcoin rate of uh somewhere between via you know, when i was reporting this and doing the research for this, the rate was 51 400. I think today, it’s 53 000 or something this tesla’s investment would result in a value of around 2.3 billion us dollars. This could mean that tesla has already drawn around 800 million in profit from its investments, as you can see, that’s more than tesla’s net operating profit from selling cars in 2020, assuming that tesla bought closer to the lower end of the range the company’s bitcoin inventory could Be fifty one thousand one hundred thirty seven dollars a profit of 1.1 billion dollars, even in the worst and at the same time, most unlikely case, namely that tesla could have bought at the highest january price and only secured bitcoin. The profit would be over 400 million dollars. Now. Question is how will tesla use the profit potential? I talked about this yesterday for our paid members only um, a short video, and we know. Realistically, we can probably assume the average uh um an increase of 800 million dollars in the course of the announcement of the investment. Tesla had indicated that it was about the most effective possible use of otherwise unused capital, and also today, elon musk, said in a tweet that i just quoted in the beginning of this report that it’s better to um by make this investment then put make then make The capital in uh hold them in cash um.
I don’t know because this is also risky, but you know: tesla had indicated that it was about the most effective possible use of otherwise unused capital at its. Therefore, it is therefore quite likely that tesla’s bitcoin strategy is not geared toward the long term, but rather toward realizing profits in the short term. What will happen if tesla starts selling bitcoin? Will you know, will tesla announce that it’s going to sell with bitcoin or you know they will do it quietly and then announce that you know what we thought it was not safe to keep our cash in bitcoin and we decided to sell them. I guess you know look for the price when you see the price uh dropping uh, but i don’t know tesla is going to accept bitcoin uh as a way of payment as well. You know friends: tesla is building on the successes of the previous years on a completely new stage, despite this virus that has caused a lot of difficulties. The company managed to deliver half a million vehicles in 2020 and generate its first corporate profit of the year. Now. We’Re hoping that uh tesla will do better this year. I think the internal goal, which i reported several days ago at tesla from our sources, is that tesla plans to exceed, or at least reach 1 million vehicles in 2021, and if they do that, that that will be another a huge successful year for tesla, especially if The bitcoin success also continues and who knows, maybe tesla will double its tr revenue or uh double its its profit in 2021.
. I don’t know because there are a lot of risks and, in the meantime, couple of interesting things are happening and we’re waiting to see we’re waiting to see the tesla giga berlin uh coming into operation in june july of 2021 in germany, in kirkun, hyde, we’re waiting For to see tesla’s austin gigafactory coming into operation uh by the end of this year or maybe late fall uh in austin texas, and also we’re waiting to see uh tesla cyber truck coming into production, tesla semi truck some coming into limited production and tesla’s new 46 80 batteries coming into production, as well as new uh compact tesla vehicle coming into production, maybe starting from giga shanghai. No friends, let me know what your thoughts are about, how important bitcoin is for tesla now and what are the risks and what would you do if you were the ceo of tesla? In the meantime, this is armin haryan from talknews.com. Please subscribe to our channel. Consider the joining option for paid membership for um exclusive early access to content and have a great rest of the day.