Title: Tesla to accept doge coin as payment for merchandise, says Musk

Dec 14, 2021 07:26AM ET

By: Analysis Watch

On Tuesday, Tesla Inc. CEO Elon Musk announced that the electric carmaker would accept DogeCoin as payment for goods on a trial basis, sending the meme-based cryptocurrency up 24%.

Musk stated in a tweet that Tesla will offer some goods in exchange for Dogecoin and see how it goes.

Dogecoin, which is popular with small investors, rose to $0.20 after the tweet. According to data from the Coinbase website, Musk's tweets about the cryptocurrency, including the one in which he called it the "crypto of the people," have helped the meme coin rise 5,859% in the past year.

Musk did not specify what goods, which start at $50 and can cost up to $1,900, could be bought with Doge coins.

Tesla sells clothing, "Giga Texas" belt buckles, and mini-models of its vehicles, as well as quirky limited-edition items such as the "Cyber Whistle", which is modeled on the highly anticipated Cyber Truck. Recently, the company launched a quad bike called the "Cyber Quad" for children, also modeled on the truck.

Musk, a proponent of cryptocurrencies, has often endorsed dogecoin, saying it is better for transactions, most recently in an interview with Time magazine, which named him "Person of the Year" for 2021 on Monday.

He said bitcoin was not a good substitute for transactional currencies.

In a poll in May, Musk asked users if they wanted Tesla to accept Doge coins. During his guest appearance on the comedy sketch show "Saturday Night Live" in May, he called Doge Coins a "scam".

Musk, who has over 66 million followers on Twitter, has been very involved in the trading frenzy this year, tweeting about cryptocurrencies and helping to drive up their prices.