"We found out that by using a little program that Bitcoin uses, which is actually BitPay, we would have received US dollars," Pietro Frigerio, general manager of the dealership, says in the interview. "It's like if you come into the dealership and you want to buy a Lamborghini using gold bars, we would not accept it. So you'd go out, exchange it, and you'd come back to us. That was how it worked [with the Tesla and the Bitcoins]."
Frigerio says that the dealership doesn't accept Bitcoin as a currency and only accepts US dollars as payment for its vehicles. That said, we wouldn't be surprised if using BitPay to turn Bitcoins into US dollars for the used Model S purchase was actually easier than going through a more traditional financial establishment. Head over to CNBC to check out the "Squawk on the Street" interview with more details.