Tesla plans to sell cars for bitcoins

Photo: AP Elon Musk

The maker of electric cars Tesla has announced plans to accept payments in bitcoin crypto currency for its products, Reuters reported. Tesla elaborated that it had already bought some $1,5 billion worth of bitcoins. The information is included in a filing with the SEC.

Tesla said it acquired the crypto currency for “more flexibility to further diversify and maximize returns on our cash,” according to the filing. In addition to the deal, Tesla said it will go further and introduce payments in bitcoins in exchange for its cars as well. That would make Tesla the first major automaker to accept crypto currency as payment.

The move raised immediate questions related to CEO Elon Musk’s behavior on Twitter recent weeks, where he has been credited for increasing the prices of crypto currencies like bitcoin and dogecoin by posting positive messages about them and therefore encouraging more people to buy.

Bitcoin prices surged to new highs following Tesla’s announcement, reaching a price of at least $43,200. Tesla warned investors of the volatility of bitcoin’s price in its SEC filing.

Tesla’s move represents an investment of a significant percentage of its cash in the investment. The company had more than $19 billion in cash and cash equivalents on hand at the end of 2020, according to its most recent filing.

Similar articles

  • UN warns of record food prices surging

    UN warns of record food prices surging

    The United Nations Food and Agriculture Organisation warned of possible global food shortage amid soaring costs related to pandemic, Reuters reported. The costs of imports monitored by FAO are seen soaring by 12% this year. The spike in costs is driven by extremely high demand in lockdown periods. The world's food import costs, which include shipping charges, is projected to reach to a record $1.715 trillion this year, from $1.530 trillion in 2020, FAO elaborated in its twice-yearly Food Outlook report.

    40
  • UK seals deal with Norway, Iceland and Liechtenstein

    UK seals deal with Norway, Iceland and Liechtenstein

    UK announced it had achieved a post-Brexit agreement with three European countries, Reuters reported. Norway, Iceland and Liechtenstein which are part of the European Economic Area confirmed that the trade accords with Britain were sealed. The deals end a post-Brexit period which marked the separation of UK from EU.

    50
  • Global food prices soar in May

    Global food prices soar in May

    Global food prices surged in May at its fastest pace since October 2010, BBC reported. The foods rose by 39.7 % on monthly basis, a report by the UN Food and Agriculture Organisation (FAO) showed. The robust growth of prices was largely due to pandemic restrictions which disrupted deliveries in some parts of the world. The UN uses a broad index of global food costs, which have also climbed for 12 months in a row.

    72