Tesla (TSLA) has teamed up with Block (SQ) and Blockstream on a Bitcoin mining project. In addition to making electric vehicles, Tesla also supplies systems for generating and storing solar energy.
The Jack Dorsey-led Block (formerly known as Square) and Blockstream, seek to demonstrate that Bitcoin can be mined with renewable energy. In June 2021, they announced that they would set up a solar-powered Bitcoin mining facility in the U.S. According to a Reuters report, Blockstream CEO Adam Black said that now they have tapped Tesla to build the solar power infrastructure for the facility. The facility will be based in Texas.
The rest of the Street is cautiously optimistic about the stock with a Moderate Buy consensus rating. That’s based on 15 Buys, five Holds, and six Sells. The average Tesla price target of $1,005.64 implies 1.9% downside potential from current levels. Shares have increased 46% over the past year.
Blogger Opinions
TipRanks data shows that financial blogger opinions are 77% Bullish on TSLA, compared to a sector average of 68%.
Key Takeaway for Investors
The project to mine Bitcoin with renewable energy could benefit Tesla in a number of ways. First, it promises to create demand for Tesla’s solar power products as similar projects are launched by other miners seeking to reduce their carbon footprint. Additionally, mining with renewable energy could reduce Bitcoin’s adverse environmental impact and make it more attractive for Tesla to accept as a form of payment.
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