Tesla’s Bitcoin Adventure Promises an Even Wilder Ride
Adding more digital currency to the automaker’s balance sheet is enough to give an equity analyst nightmares.
Aren’t we going to the moon?
Photographer: Hannibal Hanschke-Pool/Getty Images
Elon Musk, the Technoking of Tesla Inc., says the electric vehicle maker will now accept payment in Bitcoin for its cars. Adding more of the capricious cryptocurrency to the balance sheet of one of the world’s fastest growing companies by market capitalization could prove explosive.
Bitcoin has doubled in value this year, after more than trebling in 2020, and reached a record of almost $62,000 earlier this month. But its journey has been far from a one-way ride. With Tesla’s 12-month price target estimate already producing an almost 800% divergence between the most bullish and bearish forecasts, increasing the company’s exposure to digital currencies will make valuing the company even harder for analysts and investors alike.