Tesla Buys $1.5B in Bitcoin Sending Prices Soaring to New All-Time High of $47,500
By Suzanne O'Halloran, FoxBusiness.com // February 9, 2021
You may soon be able to buy a Tesla with bitcoin
(FoxBusiness.com) – Tesla will begin accepting bitcoin, the electric automaker disclosed in an SEC Filing on Monday, citing efforts to “further diversify and maximize returns on our cash” and in a first, may soon accept it as payment for its cars.
“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,” the filing read.
“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.”
The move sent bitcoin higher, trading above the $42,000 level around 8 AM ET, a new all-time high. This year the cryptocurrency has gained over 33%.
Wedbush analyst Dan Ives, in a note, said “Musk and Tesla are diving into the deep end of the pool of bitcoin and crypto” and that could mean more gains for Tesla shares.
“From a stock perspective, as we have seen with Microstrategy (and Saylor), this move could put more momentum into shares of Tesla as more investors start to value the company’s bitcoin/crypto exposure as part of the overall valuation,” wrote Ives.
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