Tesla Buys $1.5 Billion in Bitcoin and Will Accept It as Payment for Cars
Tesla has invested $ 1.5 billion in bitcoin and plans to accept virtual currency as a form of payment for its cars, a mark of trust in cryptocurrency also suspected of being used for transactions illegal.\n\nSo in theory, just one bitcoin is enough to buy Tesla’s Model Y car, a city SUV, sold for a base price of $ 41,990 without tax credit.\n\nThis move comes as no surprise, as Elon Musk, the boss of the electric vehicle maker renowned for his iconoclastic positions, has long praised cryptocurrencies. \n\nAt the end of January, he temporarily changed his mini-description on Twitter to simply enter #bitcoin, which then temporarily jumped its price by around 20%.\n\nThe richest man in the world, on paper, also regularly mentions Dogecoin, an obscure virtual currency, on his account, each time causing its value to soar.\n\nBut the decision announced Monday in a document addressed to the gendarme of the American Stock Exchange, the SEC, is of another dimension since it was validated by the board of directors of Tesla, which is worth more than 800 billion dollars to Wall Street. \n\nThe group explains that it recently changed its investment policy in order to diversify its sources of liquidity. In this context, the board of directors authorized the company to invest in various financial assets, including bitcoin.\n\nTesla also plans to \”start accepting bitcoin as a means of payment when purchasing its products in the near future.\”\n\nCreated by anonymous people and managed by a decentralized network, virtual currency is particularly volatile. This instability and the anonymity it provides to its users are not welcomed by the authorities, who call for stricter regulation.\n\nThis shattering new of Tesla and bitcoin also comes as Elon Musk, boss of Tesla and the second richest man in the world, recently declared himself a supporter of bitcoin . He had notably modified his Twitter biography on Friday, January 29, to leave only a \”#bitcoin\” which had jumped the price of the cryptocurrency by more than 14%. “I think bitcoin is on the verge of being widely accepted by mainstream finance people,” he also said during a discussion on the Clubhouse audio app last week. \”I took a little long to relax,\” he also admitted. No doubt these statements should attract the attention of the SEC, the US stock market policeman. \n\nIn addition, last Thursday, Elon Musk also posted for fun a Photoshop montage of the Lion King where the billionaire carries the Dogecoin at arm’s length, symbolized by a very popular dog meme when it was created. \”Dogecoin is the people’s crypto\”, \”no high, no low, only the doge,\” he added. The capitalization of the cryptocurrency whose creator claims to be useless (and which was conceived as a joke) now exceeds $ 5 billion.\n\n#Tesla\n#Bitcoin\n\nThis is Armen Hareyan from Torque News. Please follow us at https://twitter.com/torquenewsauto on Twitter and https://www.torquenews.com/ for daily automotive news.\n\nReference\nCNBC https://www.cnbc.com/2021/02/08/tesla-buys-1point5-billion-in-bitcoin.html\nMarketWatch https://www.marketwatch.com/story/tesla-says-it-has-invested-1-5-billion-in-bitcoin-prices-surge-to-record-above-42-000-11612790314\nTinsae Aregay Torque News Tesla https://www.torquenews.com/11826/tesla-buys-15b-bitcoin-legality-elon-musk-propping-bitcoin-value-twitter-questioned\nLA Press https://www.lapresse.ca/affaires/marches/2021-02-08/tesla-donne-des-lettres-de-noblesse-au-bitcoin.php\nTrading Sat https://www.tradingsat.com/tesla-inc-US88160R1014/actualites/tesla-inc-le-constructeur-tesla-a-achete-15-milliard-de-dollars-de-bitcoins-en-janvier-952813.html
Tesla bought Bitcoin for $ 1.5 billion and plans to accept it as payment
Tesla announced on Monday that it had bought $ 1.5 billion worth of bitcoins, according to a statement from the US Securities and Exchange Commission (SEC).
According to the documents, the company said it bought the Bitcoin cryptocurrency for «more flexibility and for further diversification and increased profit from cash». In addition to buying digital currency, Tesla said it will start accepting bitcoin payments in exchange for its products.. This could make Tesla the first major automaker to accept Bitcoin as payment.
The move raised immediate questions regarding the CEO’s performance Ilona Mask on Twitter in recent weeks, where he is credited with raising the price of cryptocurrencies such as Bitcoin and Dogecoin by posting positive messages about them and therefore encouraging more people to buy.
Bitcoin prices climbed to new highs on Monday following news of Tesla, reaching at least $ 43,200. Tesla shares are up more than 2% in the premarket. Tesla warned investors about bitcoin price volatility in its filings for the SEC.
This decision of the company represents an investment of a significant part of the available funds in investments.
According to the latest data, the company had over $ 19 billion in cash and cash equivalents at the end of 2020..