Tesla’s latest bitcoin purchase seems to be paying off as the digital currency’s value exceeded $52,000 USD. The rapid growth of the currency seems to show no sign of slowing down as Scaramucci, an American Entrepreneur and founder of Skybridge predicts a $100k USD evaluation before the end of the year.
Tesla also made changes to the prices of the different SUV and sedan model variants in its continued effort to make the brand more accessible to the average consumer.
Bitcoin Boosts Company Earnings
The massive $1.5 billion USD purchase made by Tesla on Feb 8 seems to be paying off as the value of the currency continues its meteoric rise.
Yahoo finance and Benzinga reported that the value of Tesla’s newly acquired bitcoin has increased somewhere between .29 and .98 billion USD, possibly making it the company’s largest reported profit since its inception.
This comes as a pleasant surprise for the company as it lends legitimacy to its own as well as bitcoin’s viability.
Tesla has always been at the cutting edge of electric vehicle technology, striving to create a quality product that runs as effectively and cleanly as possible. This does come with its downside however as electric car research and development is still expensive and production prices remain high, so it is to be expected that the company only started reporting profits in 2020.
SUV, Sedan Model Prices Drop
The prices of the Model 3 Standard Range Plus as well as the Model Y Standard Range have dropped by $1000 and $2000 USD making their prices $36,990 USD and $39,990 USD respectively. This is refreshing news for prospective investors in the company which could help rebalance the stock value after more than a 2 percent drop over the past week.
The change in prices falls in line with Tesla’s attempt at making the brand more affordable to consumers. In the wake of a huge shift to electric vehicles by other major car manufacturers, this move can help Tesla remain competitive and increase sales for the 2021 fiscal year.
Higher performance variants’ prices were raised however, possibly to make up for the decrease in revenue.Tesla has always been a fresh and luxurious brand, maintaining a variety of expanding car models for different tastes. This will likely continue to be the case, but the company’s ultimate aim has always been to become a mainstream car brand which the average person can afford, meaning that price fluctuations are to be expected over the coming years.
A bubble about to burst?
Some analysts have been comparing Tesla stock to a bubble, predicting an eventual decline in the company’s value. But judging by the quality of Tesla’s cars; from the efficiency of the batteries to the relatively high engine performance, you can take a lot of these criticisms with a grain of salt.
It is impossible to fully predict the success or failure of a company in any market, let alone the rapidly evolving electric car/technology space. While Tesla might not be the dominant electric car vehicle seller in the future, it will definitely be a competitive company whose contributions were invaluable to jumpstarting the industry’s boom.