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Saturday 20 February 2021

World Gone Mad

Tesla makes more profit from Bitcoin in a month than it made making cars in the whole of 2020

TeslaBitcoinTwo of the craziest things at the moment are the soaring value of Tesla’s and Bitcoin’s valuations. As I have declared, much as I admire Elon Musk and Tesla, their valuation had disconnected from reality. So I sold the shares I had originally bought in May 2015 (having made a ‘significant’ gain) some weeks ago. I’ve never got into Bitcoin. But as we now know, Elon Musk’s Tesla has – taking a $1.5b bet on the currency in January – something only recently declared to the authorities.

Since then, and I would suggest somewhat to do with Tesla’s endorsement, Bitcoin’s value has soared – up 67% this month alone as the value of one bitcoin rose to $55.5K making the total value of bitcoins in circulation ‘worth’ >$1 trillion!

All this means, according to The Times today, that Tesla has made a paper profit of $930m in a month – rather more than the $730m profit it made from making cars in the whole of 2020! (Note – Most of this $730m was made from selling green credits to other auto manufacturers – not making cars!)

‘World Gone Mad’ seems an understatement.

Posted by: Richard Holway at 14:20

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