According to the latest news, Tesla CEO Elon Musk announced on Twitter that Tesla will now accept bitcoin as a payment option for its cars in the US. Alongside the traditional card payment option, the option of bitcoin now appears on Tesla’s US website. Musk said by later this year, the payment option will be available to other countries.
Apart from confirming the availability of the new payment option, Musk discussed some details on how Tesla will be handling bitcoin. In a follow-up tweet, he said, “Tesla is using only internal & open source software & operates Bitcoin nodes directly. Bitcoin paid to Tesla will be retained as Bitcoin, not converted to fiat currency.”
In a detailed FAQ section on the website, Tesla explained how the bitcoin payment process is going to work. Tesla notes that users will have the option of scanning a QR code or copying and pasting its bitcoin wallet address to initiate the payment. Tesla warns against trying to send any other cryptocurrency to this wallet because Tesla “will not receive the transaction and it will likely result in a loss of funds for you.”
As per Tesla’s bitcoin payment terms and conditions, its cars will continue to be priced in US dollars, and customers who choose to pay in bitcoin would have to pay equivalent value in bitcoin. Tesla’s terms and conditions points out that customers would have to be extra careful when inputting the bitcoin address and amount to be paid. It also reads, “bitcoin transactions cannot be reversed. If you input the bitcoin address incorrectly, your bitcoin may be irretrievably lost or destroyed.”
Apart from this, customers will also be responsible for directly paying all bitcoin transaction fees associated with their purchase. The company warns that although bitcoin payments take less than an hour to complete, this can extend to up to “one day or more.” The company also warns that due to bitcoin price volatility, the value of any refund made in bitcoin “might be significantly less” than transacted value.
A little over a month ago, in its annual 10-K report, Tesla first announced its intention to start accepting bitcoin as a payment option. Back then, the company said, it would be adding the option in the “near future.” During the same time, the company revealed that it has invested a total sum of $1.5 billion in bitcoin so far.