Tesla and its CEO, Elon Musk, are truly unique. The company which has been producing exclusively electric cars for the past ten years continues to show unprofitability in its main line of business from year to year. Simply putting the production of electric cars is unprofitable for Tesla. These cars are quite expensive and the demand for them in the world is not as high as compared to the electric cars from other manufacturers. Therefore, the company and its billionaire owner have to get out of it. Not so long ago, the company invested $ 1.5 billion in bitcoin, as a result, this investment has already brought it a greater profit than sales of electric cars for the entire 2020 year according to experts. It is reported that the company could make a profit of at least $ 900 million due to the growth in the value of bitcoin. For the whole of 2020, the company made a profit of $ 721 million, and this profit was not formed from the sale of electric cars as mentioned above. The whole secret of Tesla's profitability lies in the environmental requirements of the US government that forces automakers to compensate for the damage caused to the environment by buying special environmental loans. The more cars an automaker makes with an internal combustion engine, the more it has to compensate. For obvious reasons, Tesla does not use these credits as it does not produce gasoline-powered cars. So it just sells unspent environmental loans to other automakers. Last year, the company earned $ 1.6 billion from the sale of such loans. Thus, it is easy to calculate that if Tesla did not sell the loans, it would be at a loss of at least $ 500 million. Investing in bitcoin is another way to earn money to bring the company to a plus by the end of 2021. Experts say that the sale of environmental loans is an excellent source of income but the company will not be able to constantly bring its balance to a plus due to this. Thus, Musk and the company need to look for new sources of income to make the production of electric cars profitable. Elon Musk himself continues to distribute comments regarding bitcoin. For example, most recently, he said that he considers the exchange rate of bitcoin and ether to be too high. Interestingly, it is just beneficial for Musk himself that bitcoin continues to grow in price, since Tesla owns bitcoins recently. Musk's comments, thus, continue to confuse the market, but the "cue ball" is in greater and greater demand every day and continues to become more expensive.
FX.co ★ Tesla has already earned more on bitcoin than the sale of electric cars for the whole of last year.
Tesla has already earned more on bitcoin than the sale of electric cars for the whole of last year.
*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade