We know that Tesla purchased $1.5 billion worth of Bitcoin. Estimates are that purchase is now worth over $2 billion. That means the company earned more than $600 million in a little more than a month.
While Tesla is the first non Wall Street firm to do this, what they did is not that uncommon these days. Many companies are starting to put their cash reserves in Bitcoin.
At the same time, reports are that the company will accept Bitcoin as payment for its vehicles, opening up the possibility for it to acquire more Bitcoin.
However, there is a lot more, potentially, to this story. There are some things that Tesla could do to further its ties to Bitcoin. It could also merge a couple of technologies in a way that would really alter what is taking place in the industries it is involved in.
In addition to making cars, Tesla is also an energy storage company. It has solar roofs as well as batteries that are tied to the grid. Many Tesla energy customers charge their batteries and then sell their excess back to the utility. This is commonplace within the solar industry.
What if Tesla decided to take their knowledge of processors and turn the industry on its ear? Instead of selling energy back to the grids, why not simply turn to Bitcoin for the solution? In particular, what if Tesla creates an application that allows each Tesla Powerwall owner to mine Bitcoin with the extra energy?
Tesla could add some processors to the Powerwall which is already tied to the Internet.
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Since Tesla is a renewable energy company, it could join in on the conversion of Bitcoin mining to a different energy source. One of the attacks on Bitcoin, rightly or wrongly, is that it consumes too much power. The energy usage for Bitcoin mining is significant although one could make the case that it is not out of range when compared to the energy the financial system utilizes.
From a consumer perspective, this would really give Tesla Powerwall owners a value added service. If over the course 5 years, if one could mine $10,000 worth of Bitcoin, this would help to offset the cost of the batteries packs or even a car itself.
When coupled with a Solar Roof from the company, this could offer the homeowner a completely different economic package not presently offered.
One of the company's areas of excellence is with chip design. The company has alternated between building their own while also using some of NVIDIA's chips. This is probably the leading semiconductor company with AI and mining chips.
Tesla could even go one step further by potentially putting a processor in its EVs, providing another potential source of revenue for vehicle owners.
Would this be worth it for the company?
From a financial perspective, it might not. However, from a marketing standpoint, it could make a lot of sense. By offering Tesla customers the ability to earn a bit of money off their purchases, it could make the company stand out compared to the competition. This could be vital since Tesla products tend to be a bit more expensive than what other companies are offering.
We are rapidly moving into a world of convergence. Companies that operate like that are in just one industry will find they are in trouble. For a company to join their renewable energy products with Bitcoin mining could be a major windfall for Tesla customers. This will further help to separate the company from other ones out there.
Tesla is already heading towards the point where their cars are actually "robotaxis" where owners can rent rides out. In other words, people will be able to send their car to work.
Perhaps another value add could be that a Tesla EV and Powerwall could be cryptocurrency miners. This will help owners to offset the costs they paid for the products.
What are your thoughts about this combination of ideas.
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