Tesla Motors Could Be New Bitcoin Champion

12/9/13 10:13AM EST

Tesla Motors Could Be New Bitcoin Champion Tesla Motors Could Be New Bitcoin Champion

Image via Flickr/ cdorobek

Tesla Motors Inc (NASDAQ:TSLA) is still trying to resurrect its reputation after a spate of fires in its Model S electric car caused its stock price to crash through November. The company is going about its business attempting to meet its sales and production targets in order to win back investors, but the seeds of doubt appear to be sown. Tesla may have to try something different in order to restore faith.

Tesla is all about the future. The company’s car boasts automation and control features not seen in many other land-borne vehicles, and it offers an electric engine capable of traveling more than 200 miles on a single charge. The company has lined up alongside many other futuristic businesses in order to offer the most forward looking technology. In that spirit the company could become a Bitcoin champion.

Tesla Model S Sells For Bitcoin

A Tesla Motors Inc (NASDAQ:TSLA) Model S sold for Bitcoin in Newport Beach last week. Lamborghini Newport Beach said that the Model S was the very first vehicle it swapped for the digital currency, but informed its customers that it was fully capable of accepting Bitcoin for new vehicles. Bitcoin is being heralded as the future of transactions, and Tesla Motors Inc (NASDAQ:TSLA) might do well to ride the wave.

Tesla Motors Inc (NASDAQ:TSA) itself had little to do with the transaction. The Tesla Model S was in the inventory of the dealer in question, and that company decided to start accepting Bitcoin. That doesn’t mean that Tesla has no interest in the currency, and there is certainly an opportunit for a single large firm to make a killing if the currency does indeed become popular.

Tesla’s Bitcoin Opportunity

The reason most business chose to begin accepting Bitcoin has little to do with the usability of the currency. For all intents and purposes Bitcoin is still almost useless as a means of payment. The currency is far too volatile for business to accept at face value so they price their goods in US dollars and convert to Bitcoin. Otherwise they would have to risk losing a large amount of money to exchange pressures.

Bitcoin, much like Tesla Motors Inc (NASDAQ:TSLA) stock, is a craze. People are speculating wildly on the future of the currency. The real problem with valuation is the lack of transparent Bitcoin transactions. People don’t know what the currency is really worth because they don’t see goods and services being exchanged for it. Tesla Motors Inc (NASDAQ:TSLA) could attempt to change that.

Bitcoin supporters, like the Winkelvoss twins, are looking for big business to put sticker prices in Bitcoin. When this actually happens, it will put some sort of stability on the value of the currency. Until it happens there is no real land mark. Tesla Motors Inc (NASDAQ:TSLA) could become a market maker for Bitcoin. It could secure another group of fanatics as a result, and it could help to stabilize its business.

Bitcoin is, however, risky. That’s the reason most companies are staying away from the currency. Tesla doesn’t need to make a move like that jut yet, but the first company to do so will make a killing if Bitcoin does indeed take off.

Disclosure: Author represents that he has no position in any stocks mentioned in this article at the time this article was submitted.