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Tesla accepts Dogecoin payments for its goods

Electric vehicle maker Tesla is testing Dogecoin (DOGE) payments and opening a range of products to crypto users.

Tesla accepts Dogecoin payments for its goods

“Tesla goods can be bought with Dogecoin”, Tesla CEO Elon Musk tweeted yesterday.

A new section on the car company’s website states that Dogecoin can be used to purchase goods at the Tesla Shop, making it the only cryptocurrency Tesla customers are allowed to use to place orders with the vehicle manufacturer.

“Tesla only accepts Dogecoin. Tesla cannot receive or recognize other digital assets. Make sure you shop with Dogecoin. Depositing other digital assets may result in their loss or destruction.”

The company also said that Doge sent to Tesla will not be returned to the buyer:

“Items purchased with Dogecoin cannot be returned, exchanged or cancelled. Items purchased with Dogecoin cannot be returned or exchanged for cash. However, if the Dogecoin amount transferred is incorrect, your order may be cancelled.

Market reaction if Tesla accepts payment in Dogecoin

Bitcoin (BTC) users may recall Tesla’s short odyssey in accepting payments in the leading cryptocurrency. The move initially sparked a spike in Bitcoin’s price, but when Tesla decided to end car purchases using BTC and announced it was considering other cryptocurrencies last May, the maker rocked the entire crypto market, causing a massive sell-off and liquidation across the crypto world.

Tesla Inc (TSLA.O) chief Elon Musk said the electric car maker would trial accepting Doge as payment for goods, boosting the meme-based cryptocurrency by more than 20%.

“Tesla will buy some merchandise with Doge and see how it goes,” Musk said in a tweet.

Shares of the automaker fell 3% in early trade amid a broad market decline.

Dogecoin, popular with retail investors, surged to $0.20 after the tweet. According to data from website Coinbase, Musk’s tweets about crypto, including what he calls “everyone’s cryptocurrency,” boosted the coin meme by 5,859 percent over the past year.

The market reaction to Tesla’s entry into DOGE has been very positive. DOGE is up 12% in one day and is the second best performer of the top 100 cryptocurrencies by market cap. Listed at number 11 on the metric at 08:35 UTC yesterday, the token is trading at $0.19 and is also up 20% in a week. According to Coingecko data, trading volume has quadrupled, exceeding $4 billion in the last 24 hours.

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Annie

Championing positive change through finance, I've dedicated over eight years to sustainability and environmental journalism. My passion lies in uncovering companies that make a real difference in the world and guiding investors towards them. My expertise lies in navigating the world of sustainable investing, analyzing ESG (Environmental, Social, and Governance) criteria, and exploring the exciting field of impact investing. "Invest in a better future," I often say. That's the driving force behind my work at Coincu – to empower readers with knowledge and insights to make investment decisions that create a positive impact.