Cryptocurrency News

Bitcoin Was More Profitable for Tesla than Automobile Sales in the Final Three Months of 2020

By February 18, 2021 No Comments

Key highlights:

  • Tesla’s position in Bitcoin was more profitable than selling automobiles in the last quarter of 2020.
  • Some reports say Oracle is planning to invest in the king of cryptocurrencies. 

Tesla announced its $1.5 billion investment in Bitcoin. The BTC position made more than $365 million in just one day, February 8 to February 9. This profit is more than the company’s profit in the last quarter of 2020 from selling automobiles. 

After the announcement of Tesla about entering the bitcoin investment world, there was a massive wave of bullish sentiment in the crypto world, and the enthusiasm among crypto fans was almost unprecedented. This also resulted in a price surge, helping push Bitcoin towards record price levels. Tesla made a significant profit in this price surge due to its large BTC position. The growth of investment was 23% during the hours, and it was massive. 

As you know, Tesla is an electric car maker. Tesla’s profit from selling cars in the last quarter of 2020 was $270 million, far less than the (unrealized) profit from its Bitcoin investment. Tesla was profitable in 2019 and 2020. The company’s adjusted income increased by over 6700% in 2020. This propelled Tesla CEO Elon Musk to become the wealthiest person in the world. 

Is Oracle next?

Popular Bitcoin proponent Max Keiser said that Oracle will be the next major company to purchase Bitcoin. Keiser cited an unnamed source, but the theory doesn’t seem too unlikely. Oracle is a company that has already been involved with blockchain technology. Larry Ellison, the CEO of Oracle, is one of the significant shareholders of Tesla, and is also close friend of Elon Musk. It’s not unlikely that Musk would influence Ellison, and we see Oracle as another corporation that makes an investment in Bitcoin.

We have seen large corporations in the BTC space recently, including Tesla and MicroStrategy. There are some rumors about other companies who want to join the convoy. If giants like Apple also come to the area of bitcoin investment, we’ll see a snowball effect, and the price of bitcoin could surge massively.