US electric vehicle manufacturer Tesla is making some big profits from its investment in Bitcoin.
Daniel Ives, an analyst at Wedbush Securities, has predicted Tesla's investment in Bitcoin could soon become more profitable than the company's vehicle sales during 2020, CNBC reports.
According to him, Tesla's $1.5B investment in the reference cryptocurrency has brought the company approximately $1B in profits.
The analyst has pointed out that the spectacular growth of the cryptocurrency, which has led Bitcoin to surpass a market cap of $1T, could result in Tesla making more money from its investment in the asset than through the sale of electric vehicles. He wrote:
"Tesla is on a trajectory to make more from its Bitcoin investments than profits from selling its electric vehicle cars in all of 2020."
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Ives also believes the investment of Tesla could encourage other companies to follow suit. However, the regulatory uncertainty in the sector is a major obstacle.