|This image, taken on November 29, 2021, represents the cryptocurrency Dodgecoin. REUTERS / Dado Ruvic / Illustration / File photo|
Tesla Inc. (TSLA.O) will accept meme-based cryptocurrency Dodgecoin as payment for its products such as the “Giga Texas” belt buckle and mini electric vehicle models, CEO Elon Musk said in a tweet on Friday.
Musk said the move comes a month after Tesla would test digital tokens as a payment option, sending Dozecoin prices up 14%. Musk, the voice of the cryptocurrency, has strongly influenced the prices of Dodgecoin and Bitcoin and at one point said that the company would accept Bitcoin for the purchase of its car before canceling the plans.
Tesla’s products, including the recently launched “Cyberwhistle” and “Cyberquad for Kids”, are popular with fans and are usually sold out within hours of listing.
Alex Kuptskevich, senior financial analyst at FxPro, said: “Some have noticed that the stock for the dog is declining even faster than the dollar. The news is a good example of the continued penetration of cryptocurrency into corporate culture.”
Musk on Dozecoin’s tweets, in which he called it “people’s crypto,” turned it into a once-vague digital currency that began as a social media joke in a gambler’s dream. In 2021, the value of tokens has increased by almost 4,000%.
Tesla announced last year that it had bought Bitcoin worth $ 1.5 billion, and Musk also claimed ownership of Bitcoin and Dodgecoin.
Tesla is facing stiff competition as legacy automakers like Ford Motor Co (FN) and startups like Rivian Automotive (RIVN.O) prepare to launch their electric cars this year. Tesla’s long-awaited cybertruck will begin production in the first quarter of 2023, furthering its plans to start production by the end of 2022, Reuters reports.