Tesla and the bitcoin rollercoaster
Elon Musk, self-proclaimed techno king of Tesla, has brought bitcoin into the world of Tesla news again, after ceasing to allow purchases of Tesla vehicles using the virtual currency.
What’s the back story?
At the start of the year, Tesla purchased $1.5 billion worth of bitcoin, for around $20k per coin. In March, in what many considered an unusual move, Musk announced via Twitter: ‘You can now buy a Tesla with Bitcoin’. Then, with bitcoin prices pushing around $50k, Tesla shed 10 percent, making a reported $101m - almost a quarter of the company’s profit for the year’s first three months.
Tesla news
On 12th May, Tesla suspended cryptocurrency vehicle purchases due to the high levels of energy used to mine bitcoin. While still positive about the future of cryptocurrencies, Musk stated ‘Tesla will not be selling any bitcoin and we intend to use it for transactions as soon as mining transitions to more sustainable energy’.
Tesla’s stock value dipped at the point Musk reneged on his offer to purchase vehicles with bitcoin but is since recovering, a sign of confidence in the brand, despite the unusual behaviour.
Would you pay in bitcoin?
The question is academic right now (although there are reported to be some dealers outside the UK accepting cryptocurrencies), but would it be safe to pay using bitcoin?
The Times puts bitcoin at the very high end of the risk spectrum. Being virtual, it’s open to hackers. Mis-typed wallet codes could see your currency permanently locked or irrevocably sent to the wrong account; without governance and consumer protection, there’s little you can do about it. And demonstrated by the changes in the last six months, it is also shown to be highly volatile, seemingly rising and falling on the back of whim and emotion.
Musk asked ‘If there’s ever a scandal about me, *please* call it Elongate’. If this was physical currency, it most certainly would be. Rest assured, you’re on solid ground here at carleasingwith the more reliable Great British Pound.
For now - you can get your own Tesla 3 on both business or personal lease at a low, physical, price. The all-electric saloon model is sleek, sustainable and stylish and with a long range.