Tesla customers can now buy their cars with Bitcoin, company chief Elon Musk has said.
Mr Musk, a well known Bitcoin enthusiast, made the unexpected announcement in a tweet.
You can now buy a Tesla with Bitcoin
— Elon Musk (@elonmusk) March 24, 2021
But Bitcoin’s value rapidly moves up and down – meaning the cryptocurrency price of the car could change day to day.
The price of a single bitcoin climbed nearly 3% to hit $56,242 shortly after Musk’s tweet — more than enough to buy an entry level Tesla Model 3, which costs just under $40,000. Tesla’s most expensive vehicle, the Model X Plaid, starts at around $120,000 — slightly more than two bitcoin.
Dan Ives, an analyst at Wedbush Securities, said “this is a seminal moment for Tesla and for the crypto world. We expect less than 5% of transactions to be through Bitcoin over the next 12 to 18 months however this could move higher over time as crypto acceptance starts to ramp over the coming years,”
And in an apparent bid to assuage fears of Bitcoin enthusiasts who want to see the ecosystem thrive, Mr Musk said: “Bitcoin paid to Tesla will be retained as Bitcoin, not converted to fiat [government-controlled] currency”