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Tesla sends bitcoin to record high with $1.5bn investment

Elon Musk’s Tesla gave bitcoin its most significant corporate endorsement yet as it revealed that it had ploughed $1.5bn of its reserves into the cryptocurrency, adding another boost to its dizzying rise. Bitcoin climbed more than 10 per cent to a record high of $44,100, extending its 50 per cent surge so far this year, as Tesla also announced plans to accept payments in the cryptocurrency for its electric cars, albeit “initially on a limited basis”. The huge volatility and high costs of using bitcoin have severely limited its use for payments until now. But if Musk can overcome those limitations, it could enable Tesla to tap a wealthy market of bitcoin speculators who have become avid of fans of his outspoken Twitter support for cryptocurrencies. The carmaker said on Monday that its board of directors and audit committee had both signed off on the investment, which represented 11 per cent of the company’s cash, net of the $5.6bn of debt for which Tesla says it is directly liable. Most Tesla observers, though, said the bet on bitcoin looked more like a personal bet by its anti-establishment chief executive. – Financial Times.