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.

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