Bitcoin

Tesla Rival Speeds Ahead with Bitcoin (BTC) Payment Option

Christine Vasileva | Oct 17, 2019 | 08:30

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Luxury electric car maker, Karma Automotive, now has a Bitcoin (BTC) payment option for its models. The firm is now ahead of Tesla, which has so far only toyed with the idea proposed by the crypto community.

BTC Payments Part of the VIP Package

Karma now offers new buyers and old customers the opportunity to use BTC to buy new car models, as well as services. The option will be available at the Karma Newport Beach Store, the company’s flagship operation. The service is part of the VIP option package at the car sale and service center.

Adding BTC will only boost the firm’s image as a cross between a company for VIP clients, and a high-tech incubator riding the latest trends. The payment option will be available through a partnership with Wanxiang Group.

Karma CEO, Dr. Lance Zhou, said:

Karma’s flagship store will support our efforts to prove emerging technology and provide the latest VVIP customer treatment offerings by accepting Bitcoin cryptocurrency.

The BTC appeal has moved on from the “lambo” ethos of its early days, and onto the novelty of electric vehicles. The Karma electrical vehicles are also opening up their platforms to test various blockchain applications available in the automotive space.

BTC has proven immensely useful for large-scale purchases. Real estate and luxury cars, as well as luxury goods have been available to selected customers. Now, Karma brings a BTC-powered store do its new location, among other luxury car stores near the John Wayne airport in Newport Beach, California.

Karma Aims for High-End, High-Tech Incubator Status

Karma Automotive is also on an expansion drive to introduce its Revero GT model across the US and Canada, with a global all-electric platform expected to unroll in 2021. The stores also carry an innovative three-cylinder BMW engine boasting 535 horsepower capacity. Through its models, Karma wants to establish itself as a high-end incubator for automotive breakthroughs.

As for Tesla, its real involvement with crypto assets has been superficial. Elon Musk tweets have praised BTC and Dogecoin (DOGE), but so far, no BTC transaction for a Tesla has been reported.

BTC payments are also facing new challenges, as the US Internal Revenue Service introduced new guidelines to recognize taxable events. It is no longer possible to transfer BTC in exchange for a good or service, without recognizing taxable income.

Still, the Bitcoin network is especially suited for high-end transfers, as it often carries transactions of close to $1 billion in value, with relatively low fees.

What do you think about Karma Automotive’s move to accept BTC? Share your thoughts in the comments section below!

Images via Shutterstock