Tesla purchases using Bitcoin are coming as EV maker invests $1.5B in cryptocurrency

[MEDICALJMP]

Tesla purchases using Bitcoin are coming as EV maker invests $1.5B in cryptocurrency
By Simon Alvarez
February 8, 2021


It appears that Tesla is indeed serious about allowing customers in the future to purchase their vehicles using Bitcoin. This was hinted at in a recently submitted Form 10-K that Tesla filed to the United States Securities and Exchange Commission on Monday.

In its filing, the electric car maker revealed that it had acquired $1.5 billion in Bitcoins in January, and that it intends to accept the cryptocurrency as a payment option in the near future. The update from Tesla promptly sent Bitcoin prices up over 12% to around $43,394, a gain of nearly 9% in early trading.

“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,” Tesla wrote, later adding that “digital assets may be subject to volatile market prices, which may be unfavorable at the time when we want or need to liquidate them.”

The update comes amidst Elon Musk’s frequent posts about cryptocurrencies in his Twitter page. While the majority of Musk’s cryptocurrency-related posts have so far involved Dogecoin, a cryptocurrency created as a joke, the Tesla CEO did incite speculations when he briefly updated his Twitter profile with a #bitcoin hashtag. Musk also later tweeted “In retrospect, it was inevitable.”

Earlier this month in a session on drop-in audio conference app Clubhouse, the CEO stated that he supports Bitcoin. “I do at this point think bitcoin is a good thing, and I am a supporter of Bitcoin. I think Bitcoin is really on the verge of getting broad acceptance by conventional finance people,” Musk said.

Allowing customers to purchase their Teslas through Bitcoin would further emphasize the electric car maker as a future-forward company that has its pulse in emerging trends. This is very much in line with Tesla’s character, considering that the company prides itself in being at the bleeding edge of tech, both in terms of its vehicles and in the ways that they could be purchased.

Read Tesla’s Form 10-K here.

tsla-10k_20201231-gen by Simon Alvarez on Scribd
https://www.teslarati.com/tesla-bitcoin-purchases-confirmed-15b-investment/
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Who will buy their Cybertruck using Bitcoin?

Why did Tesla invest $1.5 billion into the cryptocurrency? Can’t you use it as a means of exchange without plunking down that much in speculative currency?

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[Diehard]

Why did Tesla invest $1.5 billion into the cryptocurrency? Can’t you use it as a means of exchange without plunking down that much in speculative currency?

The answer is in your post: 12%. It is a self fulfilling prophecy. If you could make $180,000,000.00 in one day, wouldn’t you?

Bitcoin is about future. Tesla has gained credibility in that front and any currency rides mostly on faith. Tesla give people more faith and increases Bitcoin’s value as a result.

 

[OneLapper]

Tesla is up $286,000,000 in BTC since EOD on Friday 2/5.

Good for them!

 

[TruckElectric]

 

[MEDICALJMP]

What goes up may go down.

 

[FutureBoy]

What goes up may go down.

I think the quote is supposed to be:

What goes up MUST come down.

Now, that probably was a quote that originated with the idea of gravity but it does seem to apply to things like the stock market too. Over time there have been some companies that survived a very long time but that doesn't mean they won't eventually go out of business someday.

 

[MEDICALJMP]

I think the quote is supposed to be:



Now, that probably was a quote that originated with the idea of gravity but it does seem to apply to things like the stock market too. Over time there have been some companies that survived a very long time but that doesn't mean they won't eventually go out of business someday.

That is the quote, but with irrational exuberance you never know when the bubble will pop and how far is the drop.

I stay away from the more speculative investments of cryptocurrency. I don’t trade in fiat currencies either. Invest in what you know, as they say. I know that a very, very few places outside the Dark Web takes cryptocurrencies. Tesla is the first brand name company I have heard of that will/may take it in exchange for products and services. I read Apple may start taking Bitcoin as well. Some very smart, rich, large Tesla investors question Tesla’s investment on Bitcoin. Elon is brilliant, but he makes mistakes and miscalculations too (how many times has he been married?). That is why I posted this topic. You can say they made a buttload of money today, but that is the Elon Effect. What will happen tomorrow or next week? Next month? When it is no longer “Elon did this” in the news and it has to live on its merits alone is when we see if that is a fine investment.

The daily swings up and down on Bitcoin makes rollercoasters look like the It’s A Small World After All ride at Disneyland..

 

[FutureBoy]

That is the quote, but with irrational exuberance you never know when the bubble will pop and how far is the drop.

I stay away from the more speculative investments of cryptocurrency. I don’t trade in fiat currencies either. Invest in what you know, as they say. I know that a very, very few places outside the Dark Web takes cryptocurrencies. Tesla is the first brand name company I have heard of that will/may take it in exchange for products and services. I read Apple may start taking Bitcoin as well. Some very smart, rich, large Tesla investors question Tesla’s investment on Bitcoin. Elon is brilliant, but he makes mistakes and miscalculations too (how many times has he been married?). That is why I posted this topic. You can say they made a buttload of money today, but that is the Elon Effect. What will happen tomorrow or next week? Next month? When it is no longer “Elon did this” in the news and it has to live on its merits alone is when we see if that is a fine investment.

The daily swings up and down on Bitcoin makes rollercoasters look like the It’s A Small World After All ride st Zdisneyland.

I think people saying things like "XXX made $YYYY today" because of a price jump in said stock / asset is silly. Really $0 were "made". It's not till the stock or asset is sold that the money actually gets made. Bitcoin jumps because Tesla spent $1.5 billion in bitcoin. What do you think will happen if they try to sell that much bitcoin? No way they get all that appreciated value out. This is especially true on the stock market where so many of the transactions are being done automatically. If I see the stock price of Tesla jump to $1000 I can try to sell at that price. But just the act of placing a sell order will cause the trajectory of the stock to dip a little. Now at the scale of my transactions it will be nigh impossible to see the dip. But say Elon wanted to liquidate, he would most certainly not be getting out the full billions of dollars that his current stocks are valued at.

 

[TruckElectric]

That is the quote, but with irrational exuberance you never know when the bubble will pop and how far is the drop.

I really liked Alan Greenspan. Could listen to him for hours.

I know that a very, very few places outside the Dark Web takes cryptocurrencies. Tesla is the first brand name company I have heard of that will/may take it in exchange for products and services.

Not sure if they still do but several years ago Dell was accepting Bitcoin.

 

[MEDICALJMP]

I really liked Alan Greenspan. Could listen to him for hours.



Not sure if they still do but several years ago Dell was accepting Bitcoin.

One, maybe. Hardly a stunning success of adoption. Call me when McDonald’s takes Bitcoin.

I remember a news story locally years ago where a dentist would accept Bitcoin for payment. I don’t know if he ever had any customers use it. If so, did he use it to buy drugs or other illegal purchases or is he now sitting on one of the most expensive dental exams in history?

 

[MEDICALJMP]

Here's How Much a Fully Loaded Tesla Model S Will Cost You in Bitcoin
If you're a long-time holder, it's totally affordable!
By Jeff Benson
3 min read


In brief

• Tesla bought $1.5 billion in Bitcoin.
• It plans to allow people to purchase cars in Bitcoin.
• Depending on the model, a Tesla costs somewhere between 1 and 3.33 BTC.

Lamborghinis have been the traditional status symbol for Bitcoin millionaires. After today, expect to see more crypto influencers rolling up in Teslas.

When Tesla reported its $1.5 billion purchase of Bitcoin to the US Securities and Exchange Commission, the electric automaker mentioned an important detail in the filing: It wasn’t just buying thousands of Bitcoins—it was going to start accepting them for its products, too.


While that’s still a little ways off, it might behoove Elon Musk-loving Bitcoiners to start the car-buying process. At today’s rate of roughly $45,000 per BTC, they should be able to get a decked out Model S, Tesla’s premier vehicle, for about 3.33 Bitcoin ($149,990).

For the Tesla aficionado, who demands ludicrous precision, that’s the Model S Plaid+, which comes with self-driving capability (knock 0.25 BTC off the price if you want your hands on the wheel at all times.) Tesla asks for skin in the game, so to place an order, you’d have to put $1,000 down, which is nothing—just 0.025 BTC!

If all that sounds too expensive, there are other options, all the way down to the budget Model 3 Standard Range Plus, which is a Tesla minus all the fun stuff: no all-wheel drive, no extended range, and no full autopilot mode. You can get that model, which will take you up to 263 miles on a single charge, for $37,990. Thanks to the buying spree Tesla’s $1.5 billion purchase set off today, that’s not even 1 Bitcoin. Totally affordable.

The Model Y is a bit pricier. The “Performance” version of the luxury vehicle costs $59,990, or just under 1.5 BTC. It comes with dual motor all-wheel drive, and you can add on a tow hitch for 0.025 BTC ($1,000) and full self-driving capability for 0.25 BTC ($10,000).

If you’re looking for something that was rejected from a Mad Max film, try the Cybertruck. The Tri Motor AWD version with full self-driving capability goes 500 miles at least, and costs a cool $79,900—just under 2 BTC.

Of course, the Cybertruck isn’t going into production until later this year. At that point, you might be able to get one for less than 1 BTC if Elon Musk keeps tweeting to the masses.


https://decrypt.co/57071/heres-how-much-a-fully-loaded-tesla-model-s-will-cost-you-in-bitcoin

 

[MEDICALJMP]

Tesla’s Bitcoin investment ‘a distraction’ from quality issues, Big Short investor says.

By Joey Klender
February 9, 2021


Tesla’s recent $1.5 billion investment into Bitcoin is a distraction from Chinese regulators looking into complaints of quality issues from consumers, Big Short investor Michael Burry said in a series of deleted tweets on Monday.

Burry, who predicted the 2007 housing collapse by recognizing a market bubble, has been notably bearish on TSLA stock in recent memory. In January, Burry took to Twitter to claim the automaker’s investors “should enjoy it while it lasts,” speaking of Tesla’s 700% rise in value on Wall Street last year.

Michael Burry was the subject of the Hollywood hit “The Big Short,” a novel turned into a Steve Carrell and Christian Bale-led film that showed the story of the 2007 housing collapse. Burry made billions in gains after placing a $5 billion short and says that Tesla’s situation is eerily similar to the housing crisis that occurred nearly a decade and a half ago.

“Chinese regulators summon Tesla on quality issues as consumers complain about quality…but $TSLA bought $BTC,” Burry said. “In my mind’s eye, so much #digitalconfetti.”

Five separate Chinese regulatory agencies summoned Tesla after complaints came forward from Model 3 buyers. The State Administration for Market Regulation, or SAMR, stated that battery fires and abnormal acceleration were two of the main concerns that were being addressed, CNN said. Battery fire concerns could deal with a recent parking garage fire that involved a Model 3 with battery damage after it was punctured during a drive. Tesla indicated that the vehicle in question likely had damage to its undercarriage and battery, Chinese outlets reported.

Regarding the Chinese regulators, Tesla released a statement on its official Weibo account:

“Tesla sincerely accepts the guidance of government departments, deeply reflects on the company’s shortcomings in the business process, and comprehensively strengthens self-inspection. We will strictly abide by Chinese laws and regulations and always respect consumer rights. At present, the company is strengthening the internal working mechanism and process under the guidance of the competent government department, and strengthening internal management in all aspects. For the problems reported by consumers, we will systematically investigate, effectively implement the protection of consumers’ rights and interests, further implement the main responsibility of corporate quality and safety, effectively maintain social public safety, and better contribute to the healthy and healthy development of China’s new energy vehicle market in the future.”
Burry added to his flurry of tweets that disapproved of Tesla’s Bitcoin investment.

“$TSLA and $BTC correlation coefficient is 0.951967 over the last six months,” he said, according to Business Insider. “@elonmusk going for perfect unity? Nah, Elon dreams the impossible. He is determined to break unity. Correlation > 1. And he has history on his side. $TSLA and $BTC investors can make anything happen.”

However, Tesla’s $1.5 billion Bitcoin investment isn’t looked at negatively by all investors. ARK Invest’s Tasha Keeney indicated that the investment opens the doors for an easier international expansion, especially when dealing with corporate treasury issues. It is easier to deal with one form of currency accepted internationally than to have several forms of international currency to convert. The risk of dealing with only Bitcoin is less severe than dealing with the volatility of so many various internationally used forms of payment.

Tesla shorts are coming off of a significant year of defeat, reporting $38 billion in losses after the 700% gain in stock price last year.

Disclosure: Joey Klender is a TSLA Shareholder.


https://www.teslarati.com/tesla-tsla-bitcoin-distraction-china-quality-issues-michael-burry/




Tesla’s Bitcoin buy filled with advantages: ARK Invest’s Keeney.

Tesla’s (NASDAQ: TSLA) $1.5 billion purchase of Bitcoin, a move announced yesterday in a 10-K document filed with the SEC, was the most popular news surrounding the electric automaker on Monday. While some TSLA investors saw it as their time to get out of being shareholders, others look at it as an advantage in several ways. One person looking at the move from a bullish perspective is ARK Invest’s Tasha Keeney, who believes Tesla’s Bitcoin purchase has heavy advantages as the company moves toward a broader consumer base, especially in international markets.


TESLA’S BTC PURCHASE
In a 10-K filing with the Securities and Exchange Commission (SEC), Tesla announced it had purchased $1.5 billion in Bitcoin, a cryptocurrency that has massive value, trading at over $46,600 at the time of writing. Tesla added that it “may acquire and hold digital assets from time to time or long-term,” and that it anticipates the purchase of its cars and other products by using the cryptocurrency in the near future.

The move follows CEO Elon Musk’s vocal support of both Bitcoin and Dogecoin, two cryptocurrencies that have maintained huge upside potential over the past several months. Among the ever-growing list of digital currencies, Bitcoin and Dogecoin are among the most popular in 2021, mainly because of ongoing celebrity support.

In the past several years, Bitcoin has become widely popular, especially after a meteoric rise in value in 2017 and 2018 that made it a household name. Early investors used Bitcoin to purchase goods from the internet in an untraceable manner. Now, more retail companies are working on accepting the crypto as a form of payment for everything from a pizza to a Rolex watch.

“IT IS A VERY SERIOUS MOVE FROM [TESLA] – KEENEY
Tasha Keeney, an analyst for Ark Invest, stated that Tesla’s move to purchase Bitcoin is one that aligns with the company’s recent Big Ideas Report. One of the most significant advantages to purchasing Bitcoin for Tesla is the versatility of the cryptocurrency, especially when doing business internationally. “Using Bitcoin as corporate cash, especially if you’re doing business in many different countries with many different foreign currencies…instead of dealing with the complication and the treasury risk, you can instead do this with Bitcoin,” Keeney said. “We think it makes sense from a corporate cash standpoint, and actually, we’ve done some analysts to say that if 1% of all the cash from the companies in the S&P 500 were to be converted into Bitcoin for corporate treasury purposes, this could actually increase the price by a meaningful amount, by about $40,000.”

Additionally, when operational in other countries, Tesla’s planned ride-hailing Robotaxi service could avoid hurdles and complications in payment by using a universal currency instead of multiple different foreign currencies. Keeney says the payment function could be void of conversion issues if customers used a single form of payment instead of dealing with various currencies in each region.


A PUBLICITY MOVE? ARK DOESN’T THINK SO
Bitcoin is no longer a risky or unusual form of payment. Many large companies accept the crypto as a form of currency, and Tesla just plans to be the latest one to accept it. “[Their move] is validated by other firms doing the same thing,” Keeney added during an interview with CNBC.

With Tesla focused on a widespread and quickly accelerating rollout of its products in foreign countries, Bitcoin’s international usage seems to be an advantage that the automaker can use. From a treasury perspective, it doesn’t make sense to deal with so many different foreign currencies, and Bitcoin’s universal acceptance across the world gives Tesla versatility as it expands. With plans to enter the highly elusive Indian market shortly, and expansions in Singapore, Israel, among several other countries, Tesla is technically making a move that supports its goal: accelerate the world’s transition to sustainable energy.

Tesla’s somewhat early adoption of Bitcoin as a payment method and as an internal investment also holds other benefits, Keeney says. With Tesla joining the Bitcoin movement, it, along with other companies, could experience a tailwind in growth from its influence. Other companies are bound to either invest or accept Bitcoin as a currency later on. The entities that got in before it was widely-accepted could benefit from a surge in valuation after it continues to be looked at as a payment method.

“Being one of the first companies to invest in Bitcoin, to transact in Bitcoin, actually gives them sort of an advantage to really lay that infrastructure as it becomes increasingly important. And again, as other firms might do it, because we feel there will be the need for the infrastructure to be set up. So, [Tesla] will be one of the first players to figure this out,” Keeney stated.

Check out Keeney’s interview with CNBC below.

Disclosure: Joey Klender is a TSLA shareholder. He does not hold any BTC and has no intentions to open any positions within 72 hours.


https://www.teslarati.com/tesla-tsla-bitcoin-advantages-ark-tasha-keeney-video/

 

[Crissa]

Tesla is over-valued, but I don't see it coming down any time soon. Their sales and profits will catch up soon.

-Crissa