This was announced on Twitter by Elon Musk, who also stated that the option would be available outside of the United States later this year.
Following Musk’s tweet, Bitcoin, the world’s most valuable digital currency, jumped more than 4% to $56,370 at the time of writing. According to cryptocurrency news site The Block, the bitcoin payment details on Tesla’s website were directed to a web wallet address on BTC.com.
Musk stated that bitcoin payments to Tesla would not be converted into traditional currency, but he provided few other details about how the payments would be handled. Most mainstream companies that accept bitcoin payments, such as AT&T Inc and Microsoft Corp, use specialized payment processors to convert the cryptocurrency into, say, dollars and send the money to the business.
Because of its volatility and relatively expensive and slow processing times, bitcoin, like other cryptocurrencies, is still little used for commerce in major economies, but according to some experts’ opinions, Tesla’s decision would likely persuade other Fortune 500 companies and their CEOs to include bitcoin on their balance sheets and in their investment portfolios.
Companies such as Mastercard Inc and Bank of New York Mellon Corp have accepted bitcoin as a result of Tesla’s investment, prompting forecasts that bitcoin and other cryptocurrencies will become a regular part of investment portfolios.
Last month, the electric-car manufacturer announced that it had purchased $1.5 billion in bitcoin and would soon accept it as a form of payment for cars, marking a significant step toward mainstream acceptance that sent bitcoin to a new high of nearly $62,000.
In a 10-k filing with the US Securities and Exchange Commission in February, Tesla stated that it had purchased $1.5 billion in bitcoin and that it expected to accept the cryptocurrency as a form of payment in the near future. Since then, the investment’s environmental impact has been questioned.