Tesla, an American electric vehicle and clean energy company, will accept meme-based cryptocurrency Dogecoin as payment for its merchandise such as the “Giga Texas” belt buckle and mini models of EVs, Chief Executive Officer Mr. Elon Musk said.
Dogecoin is a cryptocurrency invented by software engineers Mr. Billy Markus and Mr. Jackson Palmer, who decided to create a payment system. Approximately 113 billion coins have already been mined so far. This move of accepting Dogecoin as a payment has sent Dogecoin prices 14 percent higher.
Mr. Musk’s words have always been a fuel for the rise and fall of cryptocurrencies including the one where he called it the “people’s crypto“, buoyed the meme coin and caused it to soar roughly 4,000 percent in 2021.
Tesla’s merchandise, which also includes the recently released “Cyberwhistle”, a premium collectible made from medical-grade stainless steel with a polished finish and “Cyberquad for Kids”, is popular and usually sells out within a few hours of listing.
Last year, Tesla revealed that it had acquired $1.5 billion in Bitcoin, and Mr. Musk has also said he owns some Bitcoin and Dogecoin. The company is facing intense competition as automakers such as Ford Motor Company as well as startups including Rivian Automotive, are set to launch their electric cars this year.
Furthermore, Musk earlier stated that the company will “most likely” resume accepting Bitcoin payments after conducting due diligence on the energy mix used to generate the cryptocurrency.
Mr. Musk’s aerospace manufacturer and transportation company, SpaceX in mid 2021 announced that it would launch the “DOGE-1 Mission to the Moon” in the first quarter of 2022, and will accept Dogecoin as full payment for the lunar trip.