Tesla’s Plans to Accept Cryptocurrency Payments
Tesla’s Bitcoin Investment
Tesla (TSLA) announced yesterday that it has acquired $1.5 billion worth of Bitcoin. The company had about $19 billion in cash at the end of 2020, and the Bitcoin investment represents a substantial portion of its assets. Tesla says the move into Bitcoin will give it “more flexibility to further diversify and maximize returns on [its] cash.”
The EV maker also shared that it plans to start allowing customers to pay for Tesla vehicles with Bitcoin, which would make it the first major car company to accept cryptocurrency payments. Following the announcement, Bitcoin prices surged to new heights.
Elon Musk Voices Support for Crypto on Twitter
Tesla’s investment in Bitcoin has raised questions surrounding Elon Musk’s tweets about Bitcoin and other cryptocurrencies. In the past, the billionaire CEO of Tesla has faced criticism, as well as charges from the SEC, related to his market-moving tweets. It is not yet clear how regulations might apply to his recent tweets about cryptocurrencies.
Two weeks ago, Musk added #bitcoin to his Twitter (TWTR) bio—a move which briefly caused the cryptocurrency’s price to spike 20%. Musk’s recent tweets about Dogecoin, another digital currency, caused the token’s price to spike by 37% in 24 hours between Sunday and Monday.
Looking Ahead
Some say Tesla’s moves into Bitcoin means that cryptocurrency is becoming more established.
Other analysts believe the current crypto trends won’t last.In 2017, many celebrities voiced support for cryptocurrency, which pushed the price of Bitcoin to nearly $20,000, but then it fell to $3,000 the next year.
Crypto skeptics and supporters will be eager to see what lies ahead.
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