Tesla, Its Techno-king, and Bitcoin

But Before You Do
Make Sure They Really Are An Expert

You will probably have seen by now that Tesla’s “Techno-king” announced that Tesla would not accept Bitcoin to purchase its cars.

It was, as I envision it, an almost a Biblical moment – a modern Saul on the road to Tarsus struck by the realization that Bitcoin was very energy intensive and thus not good for the climate.

This scenario does raise one question in my mind.

Tesla’s Technoking is a widely acknowledged genius.

Whether he is smarter than Bill Gates is I understand a matter of serious and furious debate in many quarters.

Given that, I am perplexed as to how this simple fact eluded him?

Saul’s conversion was occasioned we are told by a blinding light and the voice of Jesus.

Pretty darn hard to ignore.

Perhaps, Tesla’s Techo-king had a similar experience.  

The blinding light an exploding battery? 

The voice that of Bill Gates? In which case the debate referred to above may have been conclusively resolved.

Some but certainly not I might suspect that Mr. Musk has been having a bit of fun with the gullible out there.

Talking up Dogecoin one day, driving up the price.

Then calling it a "hustle", and driving down the price on another day.

The same with Bitcoin.

Hard to tell, but I doubt it.

What we can do is look at Tesla’s conditions for the use of Bitcoin for the purchase ot its vehicles for greater insight into its core beliefs.

Veritas may often be in vino.

But it is demonstrated more often and concretely in matters financial.

The T&C were posted on Tesla’s website, but have been removed.

Presumably, in line with the most recent decision on Bitcoin.

We can turn to electrek for what they claim are the original T&C.

Here’s the “bit” about refunds.

I’ve highlighted the pertinent text in red.

If you are entitled to a refund of your payment or to a buyback, we reserve the right to refund to you either the exact Bitcoin Price that you provided to us at the time of purchase or an amount of US Dollars that is equivalent to the US Dollar price of the product that you purchased, at our sole and absolute discretion, taking into consideration operational efficiency. The same applies to all fees and incidental costs to which you are entitled. THE PRICE OF BITCOIN CAN BE VOLATILE AND THE VALUE OF BITCOIN RELATIVE TO US DOLLARS MAY DECREASE OR INCREASE BETWEEN THE TIME THAT YOU MAKE YOUR PURCHASE AND THE TIME THAT WE PROVIDE A REFUND OR BUYBACK. IF WE REFUND YOU IN BITCOIN, THE VALUE OF SUCH AMOUNT OF BITCOIN RELATIVE TO US DOLLARS MIGHT BE SIGNIFICANTLY LESS THAN THE VALUE OF SUCH AMOUNT OF BITCOIN RELATIVE TO US DOLLARS AT THE TIME OF YOUR PURCHASE. IF WE REFUND YOU IN US DOLLARS, THE US DOLLAR AMOUNT THAT WE PROVIDE TO YOU AS A REFUND MIGHT BE SIGNIFICANTLY LESS THAN THE CURRENT US DOLLAR MARKET VALUE OF THE AMOUNT OF BITCOIN IN WHICH YOU MADE YOUR PAYMENT. YOU ASSUME THE RISK OF BITCOIN PRICE. DEPRECIATION AND APPRECIATION AND WILL HAVE NO RIGHT TO SELECT THE METHOD OF REFUND. YOU ARE NOT ENTITLED TO RECEIVE ANY APPRECIATION ON THE VALUE OF THE BITCOIN THAT YOU PROVIDED TO US AS PAYMENT IN CONNECTION WITH A REFUND OR BUYBACK.

Clearly, despite its once stated belief in Bitcoin—which we can presume was or should have been operative at the time the above was written--, Tesla was unwilling to accept a potential decline in the US dollar value of Bitcoin. But was glad to accept an increase in its value.

If Bitcoin is the righteous alternative to evil fiat currencies, then why would one measure one’s profit or loss in such (fiat) currencies?

And more importantly seek to retain that fiat currency profit?

Hard to square that circle, except perhaps to note that there are many "hustles" and "hustlers" out there.

But then I am neither a Master of Coin nor a Techoking.

That being said, it’s not untypical for an investor in debt or equity to look to keep the upside and shift off the downside to some “sucker”.