Shares in Tesla is last up 1.7% in premarket trading, after a recent disclosure that it bought $1.5 billion worth of bitcoin. Tesla also said in its 10-K filing with the Securities and Exchange Commission in China that it expects to start accepting bitcoin as a form of payment for products "in the near future," subject to applicable laws. The purchase of bitcoin came after the company said it updated in January 2021 its investment policy to that it may invest a portion of its cash holdings into certain "alternative reserve assets," including digital assets, gold and gold exchange-traded funds.
The company said it bought the bitcoin for “more flexibility to further diversify and maximize returns on our cash,” according to the filing. In addition to the purchase, Tesla said it would start accepting payments in bitcoin in exchange for its products as well. That would make Tesla the first major automaker to accept bitcoin as payment.
The move raised immediate questions around CEO Elon Musk’s behavior on Twitter in recent weeks, where he has been credited for influencing the price of crypto's by his comments, like bitcoin and dogecoin by posting positive messages about them and therefore encouraging more people to buy.
Bitcoin prices surged as much as 12% Monday following Tesla’s announcement, reaching a price of at least $43,200. Tesla shares were up more than 2% in premarket trading.
Bitcoin prices surged as much as 12% Monday following Tesla’s announcement, reaching a price of at least $43,200.