In March 2021, the automaker Tesla announced selling its electric vehicles for cryptocurrency, particularly for bitcoins. But after just two months, the company stopped accepting such payments. Tesla founder and head Elon Musk announced this decision on his Twitter page.
A well-known American entrepreneur said it is no longer possible to pay for Tesla electric vehicles with bitcoins. This is due to the company’s concern about the negative impact of mining on the environment. Mining cryptocurrency requires more and more fossil energy sources, particularly coal, which has the worst emissions of any fuel, he said.
“Cryptocurrency is a good idea, and we believe it has a great future, but it can’t be too costly for the environment. Tesla will not sell existing bitcoins, and we intend to re-use them for transactions as soon as mining moves to more sustainable energy. We are investigating other cryptocurrencies that use less than 1% of bitcoin’s energy per transaction, ”Tesla said in a statement.
By the way, Musk is one of the famous fans of cryptocurrencies, and he mentioned them more than once in his Twitter posts and public speeches. It is to him that the Dogecoin cryptocurrency owes its popularity, which originated in 2013 as a joke, and in 2020 increased in price by more than 20,000%, becoming the fourth cryptocurrency in the world in terms of capitalization. And this may be why the market reacted sharply to Musk’s statement that Tesla no longer accepts bitcoins. Shortly after the tweet was posted, this cryptocurrency dropped 11% to $ 50,900 per coin, at times declining during trading to $ 46,600.
Interestingly, back in the first quarter of 2021, Tesla acquired digital assets in cryptocurrency for $ 1.5 billion and then sold some of them for $ 272 million. The sale of Bitcoin allowed the electric vehicle maker to generate more than $ 100 million in quarterly profits.