Tesla’s Plan for Bitcoin

Tesla's Plan for Bitcoin

Caleb Pearce-Huffman, Reporter

Tesla, co-founded by Elon Musk, is very popular for its high end electric vehicles. Upon visiting their website, I built a car to use all of Tesla’s features to see a completely affordable $66,000 total. I became surprised when scrolling to the bottom of the Tesla website because not only do they sell cars and accessories such as charging racks, they also sell solar panels and roofing tiles.

Elon Musk has been co-founder since 2008, he’s funded the company and he helped design their vehicles. He’s the richest man in the world, so he makes some rich decisions.

Recently, Musk decided to invest in Bitcoin, a cryptocurrency, using Tesla’s cash flow. He announced that he had big plans to use Bitcoin as a form of payment at Tesla soon. The play was super risky because not only did this use the company’s money, but $1.5 BILLION of the company’s money.

The other risk is that bitcoin is an electronic currency, this means that its reliance on technology isn’t as reliable as cash. The value could drop and all of Tesla’s invested money falls through. Because Bitcoin isn’t reliable, I would assume that Tesla CEOs discussed this business play and are prepared for such a dramatic fluctuation.

Following the insane investment, the price of Tesla stock rose to around $800, which compensates for the recent loss of dollar bills in their bank account. 1.5 billion is the most they’ve spent on research and development in the recent years. I’m harping that the billion and a half is some huge number because it’s something a peasant like myself doesn’t see often, but it isn’t much at all to Tesla’s $780 billion market value.