Tesla Inc. invested $1.5 billion in Bitcoin and signaled its intent to begin accepting the cryptocurrency as
a form of payment, sending prices to a new record after the vote of confidence from the electric-car market leader.
The Palo Alto, California-based manufacturer said in a filing Monday it made the bet on Bitcoin after updating its investment policy last month to allow the company to invest in digital assets as well as gold bullion and gold exchange-traded funds.
“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,” Tesla said in the securities filing.
The leading electric-car maker’s embrace of Bitcoin lends increased legitimacy to electronic currencies, which have become more of a mainstream asset in recent years despite skepticism from some. The embrace of a digital currency fits the maverick image of Tesla Chief Executive Officer Elon Musk, who upended the automotive industry with battery-powered vehicles and disrupted the equities market with the stock’s ascension to the blue-chip S&P 500 index last year.
During the bitcoin bull market of 2017, Lamborghini began taking bitcoin as a form of payment. Sales jumped appreciably as young traders cashed in. The lure of a chance to own a marquee vehicle overcame the holdr mentality for a while. Very little was subsequently said about what Volkswagen did with the bitcoin. We can assume they were immediately turned into cash since there was no response from the share price.Click HERE to subscribe to Fuller Treacy Money Back to top