Tesla purchases $1.5 billion in bitcoin, plans o accept it as payment

Tesla has announced that it is bought $1.5 billion in bitcoin and would start accepting the cryptocurrency as payment, according to an SEC filing Monday.

The company said it purchased the bitcoin for “more flexibility to further diversify and maximize returns on our cash.” The news makes Tesla the first automaker to accept the cryptocurrency.

Carson Block, founder of Muddy Waters Research, doubts any federal interference in CEO Elon Musk’s plans

“The SEC just does not have a record of success against Elon Musk so I expect any effort in that direction to go, it would just be a dead end basically.”

Dan Ives, managing director of equity research at Wedbush, sees upside for the stock

“This is Tesla and Musk diving into the deep end of the pool on crypto and it’s something that’s been rumored for a while, and ultimately now this is really them putting substance behind his view. I think it’s something the Street will have a differing view of, but ultimately … this is definitely going to be viewed as a positive for the stock.”

Mike Novogratz, founder of Galaxy Digital, sees this as a pioneering move that other companies will adopt.