© Reuters. FILE PHOTO: Representation of the Dogecoin cryptocurrency is seen in this illustration taken November 29, 2021. REUTERS/Dado Ruvic/Illustration/File Photo
(Reuters) – Tesla (NASDAQ:) Inc will accept the meme-based cryptocurrency dogecoin as payment for its merchandise such as the “Giga Texas” belt buckle and mini electric vehicle models, the company said on Friday. chief executive Elon Musk in a tweet.
The move, which sent dogecoin prices up 14%, comes a month after Musk said Tesla would test the digital token as a payment option.
Musk, a staunch supporter of cryptocurrencies, heavily influenced the prices of dogecoin and bitcoin, and at one point said the company would accept bitcoin for the purchase of its cars before ending its plans. .
Tesla’s merchandise, which also includes the recently launched “Cyberwhistle” and “Cyberquad for Kids,” is a hit with its fans and typically sells out within hours of going on sale.
“Some have noted that goods for doge are selling even faster than for dollars. This news is a good illustration of the continued penetration of crypto into corporate culture,” said Alex Kuptsikevich, senior financial analyst at FxPro. .
Musk’s tweets about dogecoin, including one where he called it the “people’s crypto,” have turned the once-obscure digital currency, which started out as a social media joke, into a speculator’s dream. The price of the token jumped around 4,000% in 2021.
Tesla revealed last year that it purchased $1.5 billion worth of bitcoin, and Musk also said he owned bitcoin and dogecoin.
Tesla faces intense competition as legacy automakers such as Ford Motor (NYSE:) Co as well as startups such as Rivian Automotive are poised to launch their electric cars this year.
Tesla’s highly anticipated Cybertruck will enter production in the first quarter of 2023, pushing back its plan to start production until late 2022, Reuters reported.
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