You Can Now Buy A Tesla In United States Using Bitcoins, Says Elon Musk

The development comes when Tesla plans to set up an electric vehicle (EV) manufacturing plant in Karnataka, marking a significant step forward in the country's efforts to minimize its heavy dependence on oil and, and thereby, pollution.

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Billionaire Elon Musk on Wednesday said that bitcoin, the world's most famous and largest cryptocurrency, can be used to purchase a Tesla vehicle. However, customers outside of the United States will be able to use the feature later this year.

"You can now buy a Tesla with bitcoin," tweeted Musk, which garnered 252,000 likes and 47,000 retweets within hours.

"Tesla is using only internal & open source software & operates bitcoin nodes directly. Bitcoin paid to Tesla will be retained as Bitcoin, not converted to fiat currency," Musk tweeted, adding that pay by Bitcoin capability available outside the US later this year.

The development comes when Tesla plans to set up an electric vehicle (EV) manufacturing plant in Karnataka, marking a significant step forward in the country's efforts to minimize its heavy dependence on oil and, and thereby, pollution.

Tesla Motors India and Energy Private Limited were incorporated, with its registered office in Bengaluru, India's technology hub. After the United States and China, the planned Indian facility would be Tesla's third manufacturing facility worldwide.

However, India plans to enact a new law banning cryptocurrencies, imposing fines on anyone trading or holding such digital assets in the country, in a possible blow to millions of investors piling into the new asset class.

Billionaire investor Rakesh Jhunjunwala, also known as Warren Buffet of India, last month said that the country's regulators should ban cryptocurrencies such as Bitcoin.

India is estimated to have Rs 3 lakh crore cryptocurrency market with about 80 lakh participants and Rs 1,000 crore turnover at dozen exchanges per day.

Tesla last month had invested $1.5 billion in bitcoin as part of a strategy to "diversify and optimize returns" on its cash.

Musk is betting big on the world's largest cryptocurrencies. "I think bitcoin is on the verge of getting broad acceptance by conventional finance people," the billionaire said last month.

Even after Tesla allows Indians to buy Tesla cars using Bitcoins, the customers will have to wait for government law on cryptocurrencies.