Tesla Inc (NASDAQ:TSLA) has come up with a payment window methodology to tackle Bitcoin’s (BTC) notorious volatility.
What Happened: The automaker has released its “Bitcoin Terms & Conditions,” which lay out the procedure for purchasing a vehicle with BTC.
The Elon Musk-led company will price all products in U.S. dollars and customers choosing to pay in BTC must pay an equivalent value. Tesla will provide a BTC equivalent price.
“You must initiate the transfer of the Bitcoin Price to us within the time period that we provide to you together with the Bitcoin Price (the “Bitcoin Price Window”),” as per Tesla’s terms.
If the transfer is not initiated within the Bitcoin Price Window, the BTC price will expire and Tesla will provide a new BTC price and window on customer’s request.
Why It Matters: Musk announced Wednesday that Tesla would begin to accept Bitcoin payments for its vehicles. He said the company would not convert the paid amounts into fiat.
The swings in BTC can be gauged by the current price action. BTC traded 3.24% lower at press time at $53,028.38. It touched a high of $57,262.38 in a 24-hour period.
If you were to order a Model S Long Range for the purchase price of $78,490 at press time it would cost BTC 1.48, but during the 24-hour high it would have cost BTC 1.37, that’s a difference of 8.02% within the span of 24 hours.
However, volatility aside, there may be one advantage for customers buying a Tesla with BTC — lower taxes.
Price Action: Tesla shares closed nearly 4.8% lower at $630.27 on Wednesday and gained almost 0.6% in the after-hours trading.
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Read More:Tesla Motors (TSLA) – How Tesla Plans To Tackle Bitcoin Volatility In Payments For Its Vehicles
2021-03-25 01:19:00
