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Elon Musk Hints at Tesla Accepting Dogecoin for Cars — DOGE to the Moon?

Published March 14, 2024 10:45 AM
Teuta Franjkovic
Published March 14, 2024 10:45 AM
By Teuta Franjkovic
Verified by Peter Henn

Key Takeaways

  • Elon Musk expressed openness to accepting Dogecoin as payment for Tesla vehicles.
  • Musk has a history with Dogecoin, promoting its use but also calling it a “hustle”.
  • Tesla previously embraced Bitcoin but halted purchases due to environmental concerns.

Elon Musk has shown interest in integrating Dogecoin  as a payment option within Tesla’s ecosystem.

Previously, Tesla announced it would accept Dogecoin as payment for merchandise, which led to a significant increase in the cryptocurrency’s value.

Musk Hints at Tesla Accepting Doge, Price Takes Off

During a March 13 event at the Berlin Gigafactory, an audience member asked whether it would soon be possible to purchase a Tesla with Dogecoin. Musk responded positively .

He stated :

“At some point, I think we should enable that.”

Musk’s response was met with excitement from investors, leading to a notable increase in the cryptocurrency’s market value.

Dogecoin experienced a significant price jump , rising 9% from $0.172 to $0.186, as the news spread.

Musk Promotes Dogecoin for Everyday Transactions

Elon Musk’s has appeared to support DOGE, promoting Dogecoin’s use for transactions within his companies. For instance, Musk announced that SpaceX, similar to Tesla, would soon start accepting Dogecoin as payment for merchandise.

Although Musk is perceived to support Dogecoin, he says his personal investment in cryptocurrencies, including Dogecoin, is relatively small compared to the overall cash and assets of his companies, indicating a cautious approach to crypto investment.

Musk also said he wanted to back a cryptocurrency that resonates with the broader public, unlike Bitcoin, which has garnered significant support from wealthier individuals.

On the other hand, Musk calling it a “hustle” on American TV show Saturday Night Live in May 2021 tanked the price of DOGE.

Musk’s X App Eyes Payments – Could Doge Shine or Is It All Fiat Talk?

Starting January 14, 2022, Tesla began to accept Dogecoin for purchases of its branded merchandise. However, it explicitly stated only DOGE transactions would be processed, with no refunds for any other digital currencies sent by mistake. Additionally, the recent establishment of an ‘XPayments’ account by Musk’s rebranded X app (formerly known as Twitter) has sparked discussions within the cryptocurrency community regarding the potential inclusion of digital currencies in its forthcoming payment options.

The expectation is that the X app may roll out payment functionalities within the app by the middle of 2024. Yet, it remains uncertain whether these services will extend to include digital currencies alongside traditional money, or if Musk intends to elevate Dogecoin to a more prominent role in digital transactions, as some of his supporters hope.

Tesla’s Bitcoin Flip-Flop – From Embrace to Environmental Concerns

The narrative unfolded in 2021 when Elon Musk announced  Tesla was pausing vehicle purchases with Bitcoin. This was, he said, because of concerns over the environmental impact of Bitcoin mining’s reliance on fossil fuels. This announcement led to a roughly 5% decline in Bitcoin’s price immediately afterwards and the end of the early 2021 bull market.

In a United States Securities and Exchange Commission (SEC) filing  from February 2021, Tesla disclosed an investment of $1.5 billion in Bitcoin and indicated openness to further investments in Bitcoin or other cryptocurrencies in the future. Around this time, Tesla also stated its intention to begin accepting bitcoin as a payment method for its products.

In the most recent update, Tesla’s Bitcoin portfolio has expanded to around 11,509 BTC. This represents a substantial increase of 1,789 BTC from the 9,720 BTC reported in its last earnings disclosure.

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