Tesla To Bring Back Dogecoin Payments? Elon Musk’s Tweet Drives Curiosity

Key Takeaways

• The Dogecoin payment option could be returned to the Tesla website again.
• Tesla added the Dogecoin payment option in January 2022 but removed it later.
• Tesla had also added support for BTC payments but removed it as well.

While a Bitcoin payment option on Tesla’s platform appears unlikely in the near term, the electric car maker may soon introduce a more unexpected purchasing alternative: Dogecoin.

Elon Musk, a longtime supporter of the memecoin, has indicated that he hopes to revive Dogecoin as a payment option for customers buying Tesla merchandise.

Elon Musk Response Reignite Dogecoin Payment Option Hope

Musk’s latest response  to a tweet on X has brought waves of joy to the Dogecoin community.

When asked, “Who else wants Tesla to bring back the Dogecoin payment option for merch?” the X CEO replied simply, “Me.”

While the tweet might not indicate anything concrete, looking at Musk’s history, the response might be the tipping point for the re-addition of DOGE payments.

Tesla had briefly introduced the feature in January 2022, but it was removed a few months later as the bear market intensified. In recent months, however, Musk has hinted that the feature may be revived.

While many might dismiss Musk’s tweets as just another erratic response, the Tesla CEO has a history of making key business decisions on X, including buying the social media platform and rebranding it to X.

Musk, who is considered the unofficial CEO of the Dogecoin community, has a history of promoting the cryptocurrency on social media.

During the 2021 bull run, his tweets helped propel Dogecoin to new all-time highs.

However, his enthusiastic promotion of the cryptocurrency has also led to controversy, including a $258 billion class-action lawsuit filed against him in 2022.

The suit, which alleged the Tesla chief had manipulated Dogecoin prices with his tweets, was eventually dismissed in August.

Musk’s Crypto Journey From Bitcoin to Dogecoin

Elon Musk’s foray into cryptocurrency began with Bitcoin. The Twitter CEO invested $1.5 billion in Bitcoin, reportedly on the advice of Michael Saylor, a known Bitcoin maximalist.

Tesla then latest doubled down on the billion-dollar Bitcoin investment by subsequently exploring the possibility of accepting Bitcoin as a payment option for its vehicles.

However, within a month, Musk backtracked on his decision and decided to remove BTC payment options from the Tesla platform, citing high energy consumption for BTC mining. 

At the time, Musk promised to rethink his decision if more than 50% of BTC mining uses clean and renewable energy. 

With a blanket ban on BTC mining in China (the most significant hot spot for BTC mining), BTC miners moved to the United States, Russia, and Kazakhstan.

With the shift in BTC mining geography and more potent regulatory laws, more than 60% of BTC mining turned green. However, Musk refused to add back the BTC payment option as promised.

Tesla held around 39,000 Bitcoins on its balance sheet in 2021. However, the firm sold about 29,160 BTC after the 2022 bear market. The firm currently has less than 10,000 BTC.

The Tesla CEO went from being a Bitcoin hero to a villain in weeks. However, he has kept his Dogecoin following intact with his regular tweets about the memecoin.

About the Author

Prashant Jha

Prashant Jha is a crypto-journalist focused on the US and UK markets, his interests lie in blockchain technology and crypto adoption across emerging economies.

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