Elon Musk announces on Twitter that you can now buy a Tesla with bitcoin

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Elon Musk announced via Twitter that Tesla would accept bitcoin as payment. Britta Pedersen-Pool/Getty Images
  • Elon Musk announced on Twitter on Wednesday that Tesla would begin accepting bitcoin payments.
  • Tesla “operates Bitcoin nodes directly,” he said.
  • Tesla invested $US1.5 billion in bitcoin this year and has likely made nearly $US1 ($1) billion in profit.
  • See more stories on Insider’s business page.

Tesla has begun accepting bitcoin as payment, Elon Musk announced on Twitter on Wednesday.

The chief executive said that Tesla “is using only internal & open source software” and that it “operates Bitcoin nodes directly.” Nodes are computers on the cryptocurrency’s peer-to-peer network that secure and verify transactions.

-Elon Musk (@elonmusk) March 24, 2021

Musk added that “bitcoin paid to Tesla will be retained as Bitcoin, not converted to fiat currency.”

Paying with bitcoin is possible only in the US at the moment, Musk said, adding that he would expand the payment method later this year.

The price of bitcoin rose by about 5% on Wednesday following Musk’s announcement. The cryptocurrency has skyrocketed about 95% this year.

Earlier this year, Tesla announced that it had invested $US1 ($1).5 ($2) billion in bitcoin. The investment has likely already netted Tesla nearly $US1 ($1) billion thanks to the cryptocurrency’s price increase.