Since customers can now pay for a new Tesla in Bitcoin, careful consideration of the terms and conditions guiding the transaction is essential. The carmaker’s terms and conditions—though easy to miss—are not as simple as it has been painted.
Bitcoin’s extreme volatility is not a discovery. This factor makes its compatibility as a means of payment a complicated process. In addition to its previous declaration, Tesla has come out to say that there will be no form of reimbursement for buyers who accidentally overpay for a car.
The model of operation has been laid for the trading protocol for a new Model S, X, 3, or Y, using Bitcoin Payment Terms Conditions document that’s linked on its payment page has been displayed by Tesla, but it needs to be comprehensively understood in context. It is more than just entering the numbers on your credit card and clicking the button you need to make a big win-off purchase. Buyers need to utilize the services of another external platform to input the exact amount of bitcoin to be used in the purchase, as well as the correct wallet address that Tesla provides. A Bitcoin-equivalent price at the time of purchase is also provided by Tesla, which buyers must complete during the transaction period or else that price expires, nullifying the transaction.
Here’s the disclaimer provided by Tesla:
“YOU MUST EXERCISE CARE WHEN INPUTTING THE BITCOIN ADDRESS INTO THE RECIPIENT FIELD BECAUSE BITCOIN TRANSACTIONS CANNOT BE REVERSED. WE ARE NOT RESPONSIBLE FOR ANY FAILURE TO ACCURATELY INPUT THE ALPHANUMERIC CODE INTO THE RECIPIENT FIELD,” Tesla says.
Since Bitcoin and other Cryptocurrencies are regarded as property and treated as a taxable event when disposed of; it might only mean more taxes when used to purchase a Tesla.
Bitcoin is a decentralized currency with no central authority; therefore requesting a refund for overpayment or cancellation of transaction might not be feasible. Hence, Tesla makes it clear that it will not be liable in the cases where transactions don’t turn out as planned.
Will you rather purchase a Tesla with Bitcoin?