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File photo - Representations of virtual currency Bitcoin are placed on US Dollar banknotes. (REUTERS)
File photo - Representations of virtual currency Bitcoin are placed on US Dollar banknotes. (REUTERS)

Which Tesla can you buy with just one Bitcoin? Cryptocurrency on fast track

  • Tesla has indicated it may consider accepting Bitcoin as a mode of payment for its EVs.

  • Tesla has purchased Bitcoin worth $1.5 billion.
  • Bitcoin is a cryptocurrency invented in 2008. It is a kind of digital currency and has no physical form.

Tesla may soon allow customers to walk in to its showrooms and drive out in a brand new electric vehicle after making the necessary payments in Bitcoin. In what could potentially - and significantly, expand the scope of real-world usage of the cryptocurrency, Tesla's prospective move could be a massive shot in the arm for Bitcoin.

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And it already is.

Tesla has already purchased Bitcoin worth $1.5 billion which prompted a 10% surge in world's most held cryptocurrency. Experts highlight that it could significantly bolster Bitcoin's move and acceptance in the mainstream and in mainstream, real-world usage. And while a handfull of mainstream brands currently accept payment in Bitcoin through third-party processors, Tesla could become the first to accept the cryptocurrency directly.

So the question is how many Bitcoins would you need to make a Tesla car your own? Not too many.

At the time of filing this report, one Bitcoin was worth around $47,562 (or approximately 34.66 lakh).

The most-affordable Tesla - Tesla Model 3 - is priced at $36,200 in the US. This means less than the value of one Bitcoin would be good enough for this particular Tesla EV.

File photo of Tesla Model 3
File photo of Tesla Model 3

Want a Model Y instead? Model Y has been creating max buzz and is priced at $49,200. This means if Tesla makes it official to accept payments in cryptocurrency, one Bitcoin and a slightly more - at current rates of course, would be good enough for this EV SUV.

File photo of Tesla Model Y
File photo of Tesla Model Y

Model S and Model X are more premium offerings at $70,620 and $81,190, respectively. But the rate at which value of Bitcoin is rising, it may not be surprising for the cryptocurrency to reduce the gap in value vs price terms.

But nothing is official yet.

Reuters reports that if Tesla were to accept bitcoin payments the way some other major companies have, customers would transfer bitcoins from their "digital wallets" to another entity that converts them into, say, dollars and sends the sum to Tesla.

Then again, it may not make a whole lot of sense to purchase high-value items through Bitcoin, especially because the cryptocurrency is extremely volatile. A a guaranteed exchange rate with customers for a very short period of time may be one way of offsetting this key factor of volatality.

For now though, payments remain in the conventional forms even as Tesla cars continue to scale new peaks - in terms of capabilities as well as on sales charts.

  • First Published Date : 09 Feb 2021, 01:22 PM IST