Tesla sends bitcoin soaring with $1.5 billion investment, payment promise By Reuters

© Reuters. FILE PHOTO: The logo of car manufacturer Tesla is seen in Bern

(Reuters) – Tesla (NASDAQ:) Inc said on Monday it had invested around $1.5 billion in bitcoin and expected to begin accepting payment for its cars and other products with it in the near future, prompting a 7% jump in the electronic currency.

The announcement came after two weeks in which comments from Chief Executive Elon Musk encouraged small-time investors to buy bitcoin and meme-based digital currency Dogecoin as well as shares of U.S. video game chain GameStop (NYSE:)

Musk said a week ago in a tweet that bitcoin was “on the verge” of being more widely accepted among investors.

Analysts said the move by Tesla was liable to prove a game changer for the currency.

“I think we will see an acceleration of companies looking to allocate to now that Tesla has made the first move,” said Eric Turner, vice president of market intelligence at cryptocurrency research and data firm Messari.

“One of the largest companies in the world now owns Bitcoin and by extension, every investor that owns Tesla (or even just an fund) has exposure to it as well.”

Tesla said in a filing the decision was part of its broad investment policy as a company and was aimed at diversifying and maximizing its returns on cash.

It said it had invested an aggregate $1.5 billion in bitcoin under the changed policy and could “acquire and hold digital assets from time to time or long-term”.

Bitcoin surged more than 10% on Monday to a record high after Tesla’s disclosure.(https://

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Be the first to comment

Leave a Reply

Your email address will not be published.