Elon Musk States that Tesla Can Now be Bought with Bitcoin

Last Updated on April 29, 2021

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Elon Musk, the CEO and product architect of Tesla Inc., announced on Tuesday that people can now buy Tesla vehicles in the US using Bitcoin. This option will also be available outside the US later this year, but it’s not immediately clear on which countries it will apply to.

Last month, the automaker disclosed that it had bought $1.5 billion worth of Bitcoin. He further said that the company is soon going to accept Bitcoin as a payment form. Bitcoin is the most popular cryptocurrency in the world and it has drawn support from major financial institutions this year.

Elon Musk was officially made the “Technoking of Tesla” this month. And soon after getting the post, he via his Twitter account announced that Tesla can now be bought with Bitcoin. His exact words were, “You can now buy a Tesla with Bitcoin.” He also clarified that the company would not convert the paid Bitcoin into fiat currency.

The customer service page on Tesla’s website provides details on how a customer can use digital currency to pay for Tesla vehicles. The usual cost of Tesla electric vehicles is between $37,990 and $124,000 without tax.

In another tweet, he added that people outside the US would also be able to buy a Tesla vehicle using Bitcoin but “later this year.” However, Musk stated this without specifying the countries. As far as the acceptance of payment is concerned, Musk stated that Tesla uses both “internal” and “open-source software.”

Elon Musk States that Tesla Can Now be Bought with Bitcoin

He further added: “Tesla operated Bitcoin nodes directly.” Bitcoin’s network includes computers that work to validate transactions and evade the cryptocurrency from being expended twice. These computers are basically the nodes.

After learning about Tesla’s huge investment in Bitcoin, many companies, including Twitter and Uber Technologies, shared their opinion on cryptocurrency. Dara Khosroshahi, the Uber Chief Executive, stated that their ride-hailing company debated and immediately dismissed the idea of investing in Bitcoin. But, he further added that Uber could use cryptocurrency as a payment form. Twitter has not made any decision regarding Bitcoin yet. On the other hand, General Motors stated that they would assess whether they are going to accept Bitcoin as payment for its vehicles or not.

Tesla spending billions to keep the digital currency in its plans is a remarkable first move by any major corporation. It will highlight the faint presence of Bitcoin’s everyday applications in its regular dissertation. However, Tesla is a publically listed company, and its investment in Bitcoin is very rare, mainly when it comes to the most common risks of cryptocurrencies. This very unusual strategic move of Tesla has put the entire blockchain and cryptography technologies at a crucial crossroad.

In addition, Tesla’s share price is now straightly knotted to the value of Bitcoin. And, both have seen huge gains over the last 12 months. Tesla’s share rose from $100 to more than $600, while the Bitcoin rose from $7,000 to about $55,000.

However, some investors believe that Tesla and Bitcoin are both in the bubble zone. So, it is a good decision by Tesla. Not many people have sufficient Bitcoin to buy a car. But, if they have a substantial amount of Bitcoin, they can surely benefit from buying a vehicle when the value of cryptocurrency increases.