Tesla Says It May Start Accepting Crypto Again
Market Musings

Tesla Says It May Start Accepting Crypto Again

4 weeks ago
2m

Months after suspending Bitcoin payments over environmental concerns, the electric vehicle giant suggests it may be prepared to change its mind.

Tesla Says It May Start Accepting Crypto Again

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Tesla has suggested that it may start accepting cryptocurrencies as a payment method once again in the future.  

The electric vehicle maker caused a huge splash earlier this year by announcing that it had bought Bitcoin worth $1.5 billion to hold in reserve. 

Elon Musk also confirmed that his company’s sleek cars could also be purchased using the world’s biggest cryptocurrency. 

BTC raced higher on the news — with enthusiasts heralding it as a significant milestone for adoption.

However, prices ended up retreating sharply when Tesla CEO Elon Musk performed a U-turn, suspending support for BTC transactions indefinitely.

At the time, the billionaire said Bitcoin would only be accepted in exchange for Tesla cars once the industry could prove that at least 50% of the energy used by the blockchain comes from renewable sources.

Several critics had claimed that Tesla’s eco-friendly image was overshadowed by its investment in such an energy-intensive cryptocurrency — especially as concerns over climate change continue to grow.

Has the Situation Improved?

A slew of data in recent weeks and months has suggested that Bitcoin is increasingly going green.

Tesla’s updated stance came in the form of a filing to the U.S Securities and Exchange Commission — confirming it “may in the future restart the practice of transacting in cryptocurrencies.” The company added:

“We believe in the long-term potential of digital assets both as an investment and also as a liquid alternative to cash.”

Even though Tesla ended up selling off 10% of its Bitcoin investment earlier in the year — a move that was apparently designed to prove its liquidity — the company is sitting on a very healthy profit indeed.
Rough estimates suggest that Tesla owns approximately 42,000 BTC — and initially paying about $31,600 apiece.
With Bitcoin trading at $62,695 as of Tuesday morning in London, this would indicate that the electric vehicle giant has generated paper profits of more than $1.3 billion.