Elon Musk Says You Can Now Buy a Tesla With Bitcoin

author: Eric Walz   

Tesla Chief Executive Elon Musk said on Wednesday that you can now buy a Tesla electric vehicle with Bitcoin, which might help to boost acceptance of the use of cryptocurrency in the auto industry or for commerce. 

In a tweet, Musk wrote, "You can now buy a Tesla with bitcoin." However its not clear if Tesla will eventually offer the bitcoin payment option for customers in the U.S. In his Twitter post, Musk added that the option would be available outside the U.S. later this year.

Tesla made headlines last month when Musk purchased $1.5 billion worth of bitcoin and said that Tesla would soon accept it as a form of payment. Musk's bitcoin purchase in early February resulted in its price jumping roughly 10% to a record high topping $44,000. But in the following weeks Musk's bold move sparked widespread interest in the cryptocurrency, sending its price to a record high of nearly $62,000 over the following weeks.

The price of bitcoin has since fallen from its record highs, but it rose round 4% after Musk's announcement. As of Wednesday, each bitcoin is worth $56,649.20.

What is Bitcoin?

Bitcoin and other cryptocurrencies are referred to as "digital currency." The technology emerged in 2008. Bitcoin transactions are made without the use of banks or any other financial institution, therefore they are not subject to fees or other charges third parties like banks collect from the movement of money between two parties.

Bitcoin can be used to make a purchase from any company that accepts the digital currency as payment.

Every transaction of Bitcoin from one party to another is stored in a distributed ledger called a blockchain that keeps track of all transactions. Each time a transaction occurs, the ledger is updated and shared among users, so the transfer of bitcoin ownership is entirely traceable. 

This distributed and shared ledger offers the highest level of security. The field of cryptography is the foundation of Bitcoin and other cryptocurrencies, making each transaction highly secure.

Anyone with a computer can set up a Bitcoin address to anonymously receive or transfer the digital currency.

Tesla has already pioneered the use of new technology in the auto industry, including autonomous driving technology and building fully-electric vehicles that support over-the-air (OTA) software updates. But Tesla's plan to accept bitcoin as a form of payment for one of its electric vehicles or other products is unprecedented in the auto industry.

The company's investment in bitcoin further cements Tesla's position as an auto industry disruptor. However it is still unclear if legacy automakers will eventually come to accept the digital currency as a form of payment. 

Software giant Microsoft was one of the first companies to accept Bitcoin back in 2014. The company allows customers in the U.S. to use bitcoin to purchase digital content, including apps and games for Windows products and its Xbox video game platform.

Eric Walz

Originally hailing from New Jersey, Eric is a automotive & technology reporter covering the high-tech industry here in Silicon Valley. He has over 15 years of automotive experience and a bachelors degree in computer science. These skills, combined with technical writing and news reporting, allows him to fully understand and identify new and innovative technologies in the auto industry and beyond. He has worked at Uber on self-driving cars and as a technical writer, helping people to understand and work with technology.