Tesla consumers will now pay for their vehicles using Bitcoin, according to company CEO Elon Musk.
Mr Musk, a well-known Bitcoin supporter, made the surprising announcement in a tweet.
You can now buy a Tesla with Bitcoin
— Elon Musk (@elonmusk) March 24, 2021
However, the value of Bitcoin fluctuates exponentially, so the cryptocurrency price of the car can shift from day to day.
Soon after Musk’s tweet, the price of a single bitcoin increased by nearly 3% to $56,242 — more than enough to purchase an entry-level Tesla Model 3, which costs just under $40,000. The Model X Plaid, Tesla’s most expensive car, starts at about $120,000 — marginally more than two bitcoin.
Dan Ives, an analyst at Wedbush Securities, said “this is a seminal moment for Tesla and for the crypto world. We expect less than 5% of transactions to be through Bitcoin over the next 12 to 18 months however this could move higher over time as crypto acceptance starts to ramp over the coming years,”
And in an apparent bid to assuage fears of Bitcoin enthusiasts who want to see the ecosystem thrive, Mr Musk said: “Bitcoin paid to Tesla will be retained as Bitcoin, not converted to fiat [government-controlled] currency”