How many bitcoins will it cost to buy a Tesla? Elon Musk's company invests $1.5B, will accept it as payment
Elon Musk's Tesla on Monday announced a $1.5 billion investment in Bitcoin and also said that Tesla will now accept the cryptocurrency as payment for their cars
On Monday, Elon Musk's company Tesla listed a $1.5 billion investment in cryptocurrency Bitcoin in a Securities and Exchange Commission filing. The company also claimed that they would begin to accept bitcoin as payment for their payment. In the filing, Tesla explains how their investment policy had changed in January 2021, to accommodate a diverse investment plan.
The commission filing read, "In January 2021, we updated our investment policy to provide us with more flexibility to further diversify and maximize returns on our cash that is not required to maintain adequate operating liquidity. As part of the policy, which was duly approved by the Audit Committee of our Board of Directors, we may invest a portion of such cash in certain alternative reserve assets including digital assets, gold bullion, gold exchange-traded funds and other assets as specified in the future.
It further added, "Thereafter, we invested an aggregate $1.50 billion in bitcoin under this policy and may acquire and hold digital assets from time to time or long-term. Moreover, we expect to begin accepting bitcoin as a form of payment for our products in the near future, subject to applicable laws and initially on a limited basis, which we may or may not liquidate upon receipt."
How many bitcoins will it take to buy a Tesla car?
According to the filing, it was stated that the payment in the form of Bitcoin will be accepted soon. So there is no indication regarding when Tesla will make this claim a reality. In support of why there is no clarity regarding the acceptance of cryptocurrency as a form of payment, there was a note of disclaimer which read, "The prices of digital assets have been in the past and may continue to be highly volatile, including as a result of various associated risks and uncertainties. For example, the prevalence of such assets is a relatively recent trend, and their long-term adoption by investors, consumers and businesses is unpredictable."
The statement further added, "Moreover, their lack of a physical form, their reliance on technology for their creation, existence and transactional validation and their decentralization may subject their integrity to the threat of malicious attacks and technological obsolescence. Finally, the extent to which securities laws or other regulations apply or may apply in the future to such assets is unclear and may change in the future. If we hold digital assets and their values decrease relative to our purchase prices, our financial condition may be harmed."
Did Elon Musk's Doge coin push have an ulterior motive?
Recently, Elon Musk, CEO of Tesla had championed the Reddit traders' move to get behind investing in Dogecoins, a cryptocurrency that was started as a joke between two engineers. With every tweet affirming Dogecoins' existence, the share price of the cryptocurrency rose and at one point, the price of the coin surged to surpass 8 cents for the first time. This means that the company which was started as a joke is now valued at $10 billion and is up by 1,266 percent year-to-date according to Coindesk.