After investing nearly $1.5 billion in Bitcoin a couple of months ago, CEO Elon Musk finally announced on Twitter that Tesla will now accept the cryptocurrency as payment from customers for its vehicles. This payment method is available to customers in the US but Musk states that it will be “available outside the US later this year”.
Also, the company will be using its own internal and open-source software to process payments instead of third-party wallets. Customers will pay through their bitcoin wallets at an amount that reflects the current rate since the cars are priced in U.S. dollars. The company will also be keeping the funds stored as Bitcoin instead of converting them to fiat currency. With the value of Bitcoin being around $52,000 at the moment, customers will be able to purchase the Tesla Model Y or the Model 3 for less than 1 Bitcoin each.
When buyers reach the checkout page on the company’s website after choosing their car, there will be a Bitcoin button to make a deposit payment in addition to other traditional payment methods. The payment process can be started by either scanning the QR code or copying and pasting Tesla’s Bitcoin address and selecting the exact amount of Bitcoin to transfer. More details on paying with Bitcoin can be found on Tesla’s support site which answers some frequently asked questions.
Musk hasn’t been much of a cryptocurrency fan in the past and has expressed skepticism about the new form of payment. However, his views have changed, and he believes that cryptocurrencies will soon be “getting broad acceptance by conventional finance people.” In a Clubhouse interview last month, Musk states that he “should have bought it 8 years ago” and that he is a supporter of Bitcoin despite being late to the party.