Title: Musk says Tesla to accept dogecoin for merchandise

Jan 14, 2022 07:26AM ET

By: AnalysisWatch

Tesla Inc. will accept the meme-based cryptocurrency Dogecoin as payment for its goods, such as the "Giga Texas" belt buckle and mini-model electric vehicles, Chief Executive Officer Elon Musk said in a tweet on Friday.

The move, which sent the Dogecoin price up 14%, comes a month after Musk said Tesla would test the digital token as a payment option.

Musk, a vocal proponent of cryptocurrencies, has heavily influenced the prices of Dogecoin and Bitcoin, and at one point, said the company would accept Bitcoin to buy its cars before abandoning his plans.

Tesla's fan merchandise, which includes the recently launched "Cyberwhistle" and "Cyberquad for Kids", is popular with fans and usually sells out within hours.

Musk's tweets about Dogecoin, including the one in which he called it the "cryptocurrency of the people", have turned the once-obscure digital currency, which began as a joke on social media, into a speculator's dream. The token's price has risen by about 4,000% in 2021.

Tesla announced last year that it had bought $1.5 billion worth of Bitcoin, and Musk has also said he owns some Bitcoin and Dogecoins.

Tesla faces stiff competition as long-established carmakers such as Ford Motor Co. and startups such as Rivian Automotive are set to launch their own electric cars later this year.

Reuters reported that Tesla's highly anticipated cyber truck will go into production in the first quarter of 2023, delaying its plan to start production in late 2022.