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Will Tesla accept Bitcoins to buy a car?

Discussion in 'Tesla Motors' started by timk225, Jul 15, 2016.

  1. timk225

    timk225 Member

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  2. cpa

    cpa Active Member

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    I have no idea. But I would guess an emphatic no. Tesla is burning through cash. How many of Tesla's vendors accept bitcoin? Tesla does not want to have to go through whatever one goes through to convert bitcoin into dollars in order to make payroll next week. I doubt that the shareholders need to take on any additional indirect risk with bitcoin. And I doubt if some schlub in the accounting department needs another chore to perform.

    I am ignorant about such matters. A question for the home audience: How many of the Fortune 500 companies accept bitcoin? How many companies with revenues in the billions of dollars accept them?

    Just my opinion!
     
  3. bkp_duke

    bkp_duke Member

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    Just a few better-known companies that accept bitcoin (some are Fortune 500s) that accept bitcoin:

    Dell
    Overstock
    TigerDirect
    Dish Network
    NewEgg

    I personally bought not one, but two Model S's with bitcoin-derived funds (but I did convert them to USD first).

    Also remember that Musk is a co-founder of . . . PAYPAL. At the time, that was a very revolutionary payment system. Therefore paying for a Tesla with Bitcoin, while currently not possible, is not as far-fetched as you make it sound.
     
  4. timk225

    timk225 Member

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    Bitcoin History: The Complete History of Bitcoin [Timeline] Read at least the first 30 entries or so, in this interactive timeline of the history of bitcoin.

    It just KILLS me that I did not know in late 2008 what I know now about Bitcoin! Can you say "the biggest missed opportunity ever"? I did make a few grand on it from early 2013 to late 2013, but it could have been so much more. As in MANY MILLIONS more!

    The process of converting BTC to cash isn't very hard, a few people dedicated to it in the accounting department would be enough.
     
  5. bkp_duke

    bkp_duke Member

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    The process can actually be automated. As soon as payment is received it can be converted at market rate. This would ensure Tesla gets the proper USD equivalent, and would make shareholders happy. Minimal risk due to currency fluctuation.
     
  6. cpa

    cpa Active Member

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    You see, there you go. I learned a lot, and much thanks to those who replied. Of the companies who accept bitcoin, do they make routine sales in the 10^5 range?

    (I have only heard of Dell and Dish Network, so the other examples may not be as well-known as they would have you believe! :))
     
  7. Bollebeertje

    Bollebeertje New Member

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    Well... you can buy a Tesla with bitcoins here now.
     
  8. coqui33

    coqui33 Member

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    Several companies (the largest in the U.S. is "BitPay") cater to businesses who wish to accept bitcoins. They provide a bitcoin address to which customers send the bitcoins, convert the payment instantly into dollars, and every night ACH the day's receipts (in dollars) into the client business's bank account. The client business never touches the bitcoins. It resembles accepting credit cards but with less red tape.
     
  9. Tanquen

    Tanquen Member

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    Well they or at least Dell doesn't take Bitcoin. They just partnered with one of the companies that do the transaction so if the transaction fails or you get screwed over with Bitcoin or whatever, Dell doesn't care. Only after that company gets the money and agrees to give Dell the money then you've actually bought something from Dell.

    I've just been buying $500 gift cards from Gyft for Amazon and the like whenever the Bitcoin price is high. You could also set up another bank account that you could register with one of the exchanges and then just cash out but I've been too scared to do that.
     
  10. cpa

    cpa Active Member

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    The situation with BitCoin is that it is not recognized by the feds as a currency. It is considered an investment. So, companies that accept and use BitCoin have to do double the accounting.

    First, they have to determine the fair market value in the local currency (assume US$). So, if today a BitCoin is equivalent to $500 US$, then a company will take 200 BitCoin to sell the car.

    Later, the company uses 150 BitCoin to purchase materials from a supplier where the price of the BitCoin has risen to $600 US$. So, the Company has a transaction to show an expense of ($600)(150), or $90,000.

    Then, there is an investment gain of $100/Bitcoin, or $15,000 that must be recognized as revenue.

    Since the price of BitCoin fluctuates, the accounting for these occasional transactions would be more trouble than it is worth. Factor in the fact that Tesla would collect sales tax in BitCoin, but remit the tax to the states in dollars, and suddenly Tesla is out-of-pocket.

    At this stage in the game, Tesla does not have the need to accept alternative payments for their products. Cash flow is everything to Tesla, and for Tesla essentially to take payment in kind or through bartering, is going to put a crimp in their cash forecasting models.
     

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