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Why Tesla Accepting Bitcoin Is 'Seminal Moment' For EV Stock, Crypto World

Benzinga2021-03-25

Tesla, Inc.'s CEO Elon Musk announced Wednesday in a tweet that the EV maker has begun accepting bitcoin payment for car purchases.

The announcement comes within a month-and-a half after the company first said it invested in Bitcoin as a treasury reserve and will begin accepting bitcoin payments in the future.

The Tesla Analyst: Wedbush analyst Daniel Ives maintained a Neutral rating on Tesla with a $950 price target.

The Tesla Thesis: Tesla's announcement regarding allowing U.S. customers buy its cars/products using bitcoin was least expected at this point in time, as Wedbush was bracing for a second half of 2021 time frame, Ives said in a note.

Customers outside of the U.S. can avail of this facility later this year, the analyst said.

Tesla has also posted support materials on its website, with the company planning to use internal/open-source software to conduct these transactions, he said.

"This is a seminal moment for Tesla and for the crypto world with Musk now cutting the red ribbon on Bitcoin transactions within the broader Tesla ecosystem."

The analyst said he expects less than 5% of transactions to be through Bitcoin over the next 12 to 18 months. This number, the analyst said, could move higher over time as crypto acceptance starts to ramp over the coming years.

This is a potentially game-changing move for the use of Bitcoin from a transactional perspective, according to Ives.

The news, the analyst said, formalizes the strategy of Musk and Tesla "diving into the deep end of the pool of bitcoin and crypto" from a transactional perspective.

Latest Ratings for TSLA

Date Firm Action From To
Mar 2021 Mizuho Initiates Coverage On Buy
Mar 2021 New Street Upgrades Neutral Buy
Feb 2021 Morgan Stanley Maintains Overweight

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评论28

  • Jkrapido
    ·2021-03-25
    Ok wait for it to drop to 500
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  • JoeK
    ·2021-03-25
    This is already better than gold. U can't take gold to buy a tesla
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  • RajBengal
    ·2021-03-25
    Till the price and future variance is fairly stable like other currencies, it's hard to have Bitcoin as a general acceptable currency. They should differentiate between the stock and currency value.
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    • JoeK
      but this is still a move in the right direction for btc
      2021-03-25
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  • NgJunHong
    ·2021-03-25
    Buying Bitcoin now, hope its price shoot up then I use it to buy Tesla car.[开心] 
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  • kino318
    ·2021-03-25
    No sure how this work? What happen after I pay the btc and buy the car today and tmr btc big drop? 
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  • Scuttlebutt
    ·2021-03-25
    Announcement didn’t affect price. Hmmm...
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  • Zhenghao
    ·2021-03-25
    I see
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  • AhTar
    ·2021-03-25
    Will Bitcoin become an official payment mode??
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  • Joseph91
    ·2021-03-25
    Wow
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    • J999
      Cool
      2021-03-25
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  • Ray140101
    ·2021-03-25
    👍
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    收起
    • RyC
      [财迷]
      2021-03-25
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  • jamjam
    ·2021-03-25
    Towards there future for digital currency. Will we see more upside on bitcoin? Please like and comment 
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  • ProsperTTM
    ·2021-03-25
    Pls like and comment 
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    查看更多 1 条评论
  • Sixiaobao
    ·2021-03-25
    Tesla bullish?
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  • ricebowl
    ·2021-03-25
    Will it go down more before rising? 🤔
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  • Nicholasbt
    ·2021-03-25
    Still on discount. Buy!
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    • Ionics
      👍
      2021-03-25
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  • GaryL
    ·2021-03-25
    Let’s go high up Tesla and Bitcoin
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  • Kelvinyoon26
    ·2021-03-25
    👍
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  • Bliang
    ·2021-03-25
    Great
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    • Baldy
      Cool
      2021-03-25
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    • Bliang
      Bitcoin
      2021-03-25
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    • Research
      memecoin
      2021-03-25
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  • lohyiying
    ·2021-03-25
    please comment will comment too
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    • Bliang
      Comment
      2021-03-25
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    • AndyChiew
      Comment
      2021-03-25
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  • mistyzenz
    ·2021-03-25
    inevitable choice
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