Tesla buys $1.5B in Bitcoin, will accept as payment soon

SourceAssociated Press
SectorFinancial Markets
CountryMiddle east

NEW YORK (AP) — Tesla has acquired around $1.5 billion in Bitcoin under an investment policy at the electric car maker headed by Elon Musk, and it plans to begin accepting the digital currency as payment for vehicles soon. The California company revealed the new strategy in a filing with the U.S. Securities and Exchange Commission early Monday, saying its investment in digital currency and other “alternative reserve assets” may grow. Bitcoin spiked 14% and appeared to briefly hit a new all-time high.

Shares of Tesla moved higher as well. In its fourth-quarter earnings report last month Tesla said it had cash and cash equivalents of $19.4 billion. Palo Alto-based Tesla reported its first annual net profit in 2020, but once again the company needed regulatory credits purchased by other automakers in order to achieve it. Without $1.58 billion in credits for the year, Tesla would have lost money. In a year that saw its stock soar to make it the world’s most valuable automaker, Tesla earned $721 million, capped by a $270 million profit in the fourth quarter. It was the company’s sixth straight quarterly net profit after years of mostly losses. Critics say Tesla’s sales and profits are puny compared with ...read more...