Tesla 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, chief executive Elon Musk says said in a tweet on Friday.
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 cryptocurrency supporter, 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 he 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 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.
(Reporting by Akash Sriram, Nivedita Balu, Medha Singh, Rachna Dhanrajani and Anirudh Saligrama in Bengaluru; Editing by Shounak Dasgupta and Saumyadeb Chakrabarty)