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How Tesla purchases through Bitcoin could be taxed by the IRS

(Credit: @PeakHodl/Twitter)

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Tesla rolled out its Bitcoin payment option on Tuesday, marking yet another milestone for the company. But while paying for electric cars using Bitcoin is an exciting idea, Tesla’s cryptocurrency transactions will have some tax consequences.

CNBC reported that Teslas purchased with Bitcoin might come with “big tax bills.” The Internal Revenue Service (IRS) treats virtual currency as property for federal tax purposes in the United States, as per Publication 544. As such, capital gains taxes will apply to the purchase of Tesla cars bought with Bitcoin. However, the amount a person will be taxed might differ and depend on when they purchased their Bitcoin.

Tesla CEO Elon Musk stated that the company would be using only internal and open-source [sic] software to operate Bitcoin nodes directly. “Bitcoin paid to Tesla will be retained as Bitcoin, not coverted to fiat currency,” Musk explained on Twitter.

Exchanging Bitcoins for a Tesla without converting to fiat currency may make calculating capital gains tax a little confusing. Because of Bitcoin’s changing value, taxpayers may report gains or losses when using the cryptocurrency to purchase a Tesla. 

Bitcoin traded at $6,500 a year ago and the current price of a Tesla Model 3 is about $38,000. A person who “trades” his Bitcoin asset from last year for a Tesla Model 3 now would experience a cash gain of $31,500. Bloomberg calculated that such a person would owe a $4,750 tax bill to the IRS for their Tesla Model 3 purchase. 

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However, the inverse could happen as well. Currently, the price of Bitcoin is about $52,000. If a person trades Bitcoin worth $52,000 for a $38,000 Tesla Model 3, they could report a loss, resulting in a possible tax deduction the following year. 

Even though Tesla will not convert the Bitcoin it receives as payment to fiat currency, it will charge customers the equivalent value in US dollar for its vehicles. 

“If you choose to make a payment using Bitcoin, you must pay an amount of Bitcoin that is of equivalent value to the U.S. Dollar purchase price of the product that you purchase. We will provide you with a US Dollar price for the product or service that you are purchasing, as well as a Bitcoin equivalent price (the “Bitcoin Price”),” noted Tesla under the Terms and Conditions of its Bitcoin payment option.

It goes on to say: “You must initiate the transfer of the Bitcoin Price to us within the time period that we provide to you together with the Bitcoin Price (the “Bitcoin Price Window”). If you do not initiate the transfer of the Bitcoin Price to us within the Bitcoin Price Window, the Bitcoin Price will expire, and we will provide you with a new Bitcoin Price and Bitcoin Price Window upon your request.”

To learn more about calculating the capital gains tax on your Tesla, click here, or watch the video below.

The Teslarati team would appreciate hearing from you. If you have any tips, email us at tips@teslarati.com or reach out to me at maria@teslarati.com.

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Maria--aka "M"-- is an experienced writer and book editor. She's written about several topics including health, tech, and politics. As a book editor, she's worked with authors who write Sci-Fi, Romance, and Dark Fantasy. M loves hearing from TESLARATI readers. If you have any tips or article ideas, contact her at maria@teslarati.com or via X, @Writer_01001101.

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Tesla Optimus steals the show during TRON: ARES premiere

Now that kung-fu Optimus demonstration makes sense.

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Credit: Tesla Optimus/X

Just a few days ago, Elon Musk shared a video of Tesla Optimus demonstrating some kung fu moves with a human partner. The video was impressive, though some were confused about why the Optimus team was busying itself with what appeared to be a cool but frivolous demonstration. 

With the premiere of TRON: ARES, we now know that Optimus’ kung fu demonstration was part of the robot’s preparations for the red carpet. 

Optimus “starts a fight”

As noted by X Business on its official account on the social media platform, the TRON: ARES red carpet world premiere was a showcase of today’s AI-powered technologies. With this in mind, xAI, X, Walt Disney, and Tesla collaborated to provide attendees with an immersive experience on real-world AI. This included Optimus engaging with attendees, and even distributing theater concessions. 

But one black and red painted Optimus unit definitely stole the show. The humanoid robot, in front of several attendees, attempted to “pick a fight” with Jared Leto, who starts in the movie alongside Greta Lee, Evan Peters, and Jeff Bridges. As could be seen in the video of Optimus, the robot’s moves in the red carpet were similar to the kung fu demonstration that Elon Musk showcased last week. 

TRON: ARES

Monique Pintarelli, Head of Americas at X, shared some insights about the event, which ended up being a collaboration of sorts between several Elon Musk-led companies. 

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“This partnership with Disney lets fans and stars experience the world of TRON like never before – turning the red carpet event into a collision between the real world and AI. By leveraging X’s unparalleled real-time engagement and xAI’s cutting-edge technology alongside Tesla’s Optimus robots, we’re creating shared, immersive experiences that redefine storytelling,” the X executive noted.

TRON: ARES releases on U.S. theaters on October 10, 2025. 

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Tesla FSD (Supervised) V14.1 with Robotaxi-style dropoffs is here

This represents FSD’s most significant update in nearly a year.

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Credit: Sawyer Merritt/X

Tesla has started the rollout of Full Self-Driving (Supervised) V14.1, the advanced driver-assist system’s most significant update in nearly a year. The release introduces vision-based navigation for real-time detour handling and a new “Arrival Options” feature that simulates Robotaxi-style drop-offs.

New Tesla Vision-based features

With Version 14.1, Tesla has integrated navigation and routing directly into its vision-based neural network, enabling the system to respond to scenarios such as blocked roads or closures in real time. The update also enhances emergency vehicle detection, allowing the car to pull over or yield when police, fire, or ambulances are nearby.

Other improvements include refined responses to debris, school buses, and lane cut-ins, as well as smoother handling of unprotected turns and gated entries. The update also adds a Robotaxi-style automatic camera-cleaning system. Tesla also promises improved fault recovery for greater reliability during degraded system operation.

New Speed Profiles and other features

Drivers can now personalize FSD’s behavior more precisely through new Speed Profiles. A new “Sloth” mode has joined the lineup, offering a more conservative lane and speed selection than “Chill.” Preferences for parking and arrival positions are saved per destination, while the system’s reasoning model automatically recommends several options for each route.

Users can start FSD from a single tap, adjust settings from the central visualization, and expect fewer driver “nags,” according to Elon Musk. The CEO noted that Version 14 features a 10x higher parameter count and said it “feels sentient” compared to earlier builds. While it’s still a supervised system, unlike the Austin Robotaxi pilot, FSD 14.1 seems to be a key milestone toward the refinement of Tesla’s autonomous driving efforts.

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FSD (Supervised) V14.1 release notes

Following are the release notes for FSD (Supervised) V14.1:

FSD(Supervised) v14.1 includes:

• Added Arrival Options for you to select where FSD should park: in a Parking Lot, on the Street, in a Driveway, in a Parking Garage, or at the Curbside.

• Added handling to pull over or yield for emergency vehicles (e.g. police cars, fire trucks, ambulances).

• Added navigation and routing into the vision-based neural network for real-time handling of blocked roads and detours.

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• Added additional Speed Profile to further customize driving style preference.

• Improved handling for static and dynamic gates.

• Improved offsetting for road debris (e.g. tires, tree branches, boxes).

• Improve handling of several scenarios including: unprotected turns, lane changes, vehicle cut-ins, and school buses.

Improved FSD’s ability to manage system faults and recover smoothly from degraded operation for enhanced reliability.

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• Added automatic narrow field washing to provide rapid and efficient front camera self-cleaning, and optimize aerodynamics wash at higher vehicle speed.

• Added alerting for residue build-up on interior windshield that may impact front camera visibility. If affected, visit Service for cleaning!

Upcoming Improvements:

• Overall smoothness and sentience

• Parking spot selection and parking quality

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• You can now select an arrival option such as Parking Lot, Street, Driveway, Parking Garage and Curbside for Robotaxi-style drop offs.

• Your preferences for arrival options and preferred parking positions are persisted for each destination.

• Our reasoning model will assess the suitable options for your destination and pick an intuitive default.

Speed Profiles:

FSD (Supervised) will now determine the appropriate speed based on a mix of driver profile, speed limit, and surrounding traffic:

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• Introduced new Speed Profile SLOTH, which comes with lower speeds & more conservative lane selection than CHILL.

• Driver profile now has a stronger impact on behavior. The more assertive the profile, the higher the max speed.

• Right scroll-wheel up/down now adjusts Speed Profile setting rather than your precise max speed offset selection in mph/kph.

UI Improvements:

• Start Self-Driving with a tap of the touchscreen from Park, or any time during your drive.

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• Adjust settings like the Speed Profile and Arrival Options directly from the Autopilot visualization on the center display.

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Tesla plant manager tips off affordable model production

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Credit: @Gf4Tesla/X

A plant manager at a Tesla factory just tipped off the fact that the company will begin production of an affordable model in the coming weeks, all but confirming that a new car will be unveiled tomorrow.

Tesla has been teasing some kind of product unveiling for October 7 on its social media accounts. It has now dropped two separate indications that a new product is coming on its X account.

Fans have been anticipating two things: either the company’s planned affordable model, which has been codenamed “E41,” or the Roadster, a long-awaited vehicle that Tesla has kept under wraps for much longer than it would likely care to admit.

Tesla all but confirms that affordable Model Y is coming Tuesday

André Thierig, Tesla’s plant manager at the German production plant Gigafactory Berlin, tipped off what is likely coming tomorrow at the product unveiling as he revealed during an internal event today that a light version of the Model Y will begin series production and deliveries “in a few weeks.”

Thierig’s revealing of plans was reported by Handelsblatt, a German media outlet.

The description of a “light version of the Model Y” aligns with what CEO Elon Musk said earlier this year, as well as what we have seen on public roads, both covered and uncovered.

Last week, we finally saw an uncovered version of what the affordable model likely is, as it was cruising around near Gigafactory Texas, just outside of Austin.

Tesla coding shows affordable model details, including potential price

Musk said earlier this year, candidly during an Earnings Call, that the affordable model Tesla planned to release was a Model Y.

“It’s just a Model Y. Let the cat out of the bag there,” Musk said.

The images of what we assumed to be the affordable model lined up with Musk’s candid statement:

Tesla is expected to unveil its affordable model tomorrow during the planned event, which has been teased twice. Pricing and other details are still pending, but the company is expected to reveal this information tomorrow.

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