Tesla will now allow customers to use bitcoin as a form of payment for its cars in the United States, Tesla CEO Elon Musk announced Tuesday.
- Musk said: “You can now buy a Tesla with bitcoin. Tesla is using only internal and open source software and operates bitcoin nodes directly. Bitcoin paid to Tesla will be retained as bitcoin, not converted to fiat currency.”
- Musk added that the bitcoin option will be “available outside U.S. later this year.”
How it works
The bitcoin option now appears on Tesla’s website, appearing next to traditional card payment options when you make a purchase, according to The Verge.
- According to Tesla’s website, buyers can use their bitcoin wallet address — a specific code given to those who own bitcoin — or a QR code to initiate the payment.
Be careful
Tesla said that using any other form of cryptocurrency could “likely result in a loss of funds for you.” It also means you “will not receive the transaction.”
- The Verge reports that Tesla said customers should be cautious about using bitcoin because bitcoin payments cannot be reversed or changed.
Why it matters
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For one, the option to use bitcoin gives Americans another option for how to buy a Tesla.
- But, per CNBC, the move does a lot more for Musk, tying him directly to bitcoin and the rise of cryptocurrencies.
- “Musk is now tied to the bitcoin story in the eyes of the (Wall) Street and although Tesla made a billion paper profit in its first month owning the digital gold, it comes with added risk,” Daniel Ives, an analyst at Wedbush, told CNBC.