GM has no interest in following Tesla and investing in bitcoin

The reflection of bitcoins in a pc onerous power.

Thomas Trutschel | Photothek by Getty Photos

Customary Motors has no plans of investing in bitcoin, nonetheless CEO Mary Barra acknowledged the automaker will show screen customer ask because it weighs whether to accept the cryptocurrency to pay for its providers and products and vehicles.

“We fabricate now not have any plans to put money into bitcoin, so corpulent-finish there,” she acknowledged in keeping with a demand from Morgan Stanley analyst Adam Jonas within the course of the firm’s fourth-quarter earnings name Wednesday. “This is something we will show screen and we will fetch into anecdote. If there’s stable customer ask for it within the long hotfoot, there’s nothing that precludes us from doing that.”

Barra’s comments prepare Tesla‘s disclosure earlier this week that it purchased $1.5 billion worth of the cryptocurrency.

In the filing with the Securities and Replace Commission, Tesla acknowledged it supplied the bitcoin for “more flexibility to additional diversify and maximize returns on our cash.” It furthermore is anticipated to present Tesla liquidity within the cryptocurrency ahead of plans to commence accepting it for payments “arena to acceptable licensed guidelines and before every thing on a puny basis,” the firm acknowledged.

GM, unlike Tesla, would now not sell its vehicles straight to customers. It makes use of a franchised dealership community. If GM have been to accept the cryptocurrency for contemporary vehicles, it will ought to work the route of out with its dealers and their shared systems.

Billionaire businessman Tilman Fertitta told CNBC on Tuesday his luxury car dealership has supplied 17 vehicles to patrons the usage of bitcoin since it started accepting transactions the usage of the digital foreign money on the subject of three years within the past.

Prices of Bitcoin, the finest cryptocurrency by market price, surged to contemporary highs Monday following Tesla’s announcement, reaching a designate of as a minimal $44,200. It used to be trading above $44,000 per coin Wednesday morning.

In its SEC filing, Tesla warned traders of the volatility of bitcoin’s designate.

– CNBC’s Steve Kovach and Kevin Stankiewicz contributed to this article.