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Bitcoin bombshell: Elon Musk announces Tesla cars can now be bought using cryptocurrency

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Earlier this year, Tesla converted $1.5billion to Bitcoin and the company is now offering it as a payment method across the US. Tesla boss Elon Musk confirmed the news on Twitter and said it payments to Tesla will “be retained as Bitcoin”.

He tweeted: “You can now buy a Tesla with Bitcoin.

“Tesla is using only internal and open source software and operates Bitcoin nodes directly.

“Bitcoin paid to Tesla will be retained as Bitcoin, not converted to fiat currency.”

He added how paying via Bitcoin will be “available outside” the US later this year.

Over recent weeks, Mr Musk’s social media presence has helped to move financial markets.

Last month, the price of bitcoin also rose after Mr Musk said he was a “supporter” of the cryptocurrency.

Mr Musk said on Clubhouse: “I am late to the party but a supporter.

“I think Bitcoin is on the verge of getting broad acceptance by conventional finance people.”

He added: “Many friends of mine have tried to convince me to get involved in bitcoin for a long time.”

He then posted: “In retrospect, it was inevitable.”

Bitcoin’s price rose above $38,000 after the Tesla boss changed his Twitter biography to “#bitcoin”.

In February, the electronic car company announced it had bought $1.5billion (£1.1billion) in the cryptocurrency.

The company said it had “updated our investment policy to provide us with more flexibility to further diversify and maximise returns”.

They also revealed they will be accepting cryptocurrency as a form of payment for their products in the future.

In a statement, they said: “Moreover, we expect to begin accepting bitcoin as a form of payment for our products in the near future, subject to applicable laws and initially on a limited basis, which we may or may not liquidate upon receipt.”

Dan Ives, an analyst at Wedbush Securities, said: “Investors and other industry watchers will be watching this closely to see if other corporations follow the lead of Tesla on this crypto path or, on the other hand, does it remain a contained few names that make this strategic jump around bitcoin.”

More to follow…



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