Tesla Invests $1.5bn in Bitcoin and Plans to Start Accepting it as Payment

Tesla Invests $1.5bn in Bitcoin and Plans to Start Accepting it as Payment.

ELON MUSK owned Tesla Inc has announced that they have invested $1.5 billion (€1.25 billion) in Bitcoin, the company Musk has been credited for raising the prices of through his messages on his Twitter account.

The investment will also mean that Tesla will start accepting the cryptocurrency as a form of payment for vehicles and products from the electric-car market leader.

Earlier this year, Musk put the word “bitcoin” in his Twitter bio which caused a huge spike in the value of the cryptocurrency in a very short time and last week he announced he was leaving Twitter “for a while” leading people to speculate his reason why. This may have been the reason.

The Palo Alto, California-based manufacturer said today (February 8) that bitcoin provided “more flexibility to further diversify and maximise returns on our cash.”

The embrace of a digital currency fits the maverick image of Tesla Chief Executive Officer Elon Musk who doesn’t seem to care about possible market manipulation after he said on the social medial chat site Clubhouse: “I do at this point think bitcoin is a good thing, and I am a supporter of bitcoin.”

“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,” Tesla said in a statement.

Bitcoin prices surged to new highs today following Tesla’s announcement, reaching a price of at least $44,200. Tesla shares were up more than 2.5 per cent in premarket trading.

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