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Tesla starts accepting Elon Musk’s meme coin for merch

Tesla's merchandise, which also include the recently launched "Cyberwhistle" and "Cyberquad for Kids", are a hit with its fans, and usually sell out within a few hours of listing.

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Tesla Inc (TSLA.O) will accept meme-based cryptocurrency dogecoin as payment for its merchandise such as the “Giga Texas” belt buckle and mini models of electric vehicles, Chief Executive Officer Elon Musk said in a tweet on Friday.

The move, which sent dogecoin prices 14% higher, comes a month after Musk said Tesla would test out the digital token as a payment option.

Musk, a vocal proponent of cryptocurrencies, has heavily influenced prices of dogecoin and bitcoin, and at one point had said the company would accept bitcoin for purchasing its cars before axing plans.

Read more: Tesla faces investor lawsuit over Musk tweets on 10% stock sales

Tesla’s merchandise, which also include the recently launched “Cyberwhistle” and “Cyberquad for Kids”, are a hit with its fans, and usually sell out within a few hours of listing.

Don’t Miss: Exclusive: Tesla delays initial production of Cybertruck to early 2023 – source

“Some have noted that goods for doge are selling out even faster than for dollars. This news is a good illustration of crypto’s continued penetration of corporate culture,” said Alex Kuptsikevich, senior financial analyst at FxPro.

Musk’s tweets on dogecoin, including the one where he called it the “people’s crypto”, have turned the once-obscure digital currency, which began as a social media joke, into a speculator’s dream. The token’s price surged by about 4,000% in 2021.

Tesla disclosed last year it had bought $1.5 billion worth of bitcoin, and Musk has also said he owns some bitcoin and dogecoin.

Tesla is facing intense competition as legacy automakers such as Ford Motor Co (F.N) as well as startups including Rivian Automotive (RIVN.O) are set to launch their electric cars this year.

Read more: China hits back at criticism over Tesla Xinjiang showroom

Tesla’s much-awaited Cybertruck will begin production in the first quarter of 2023, pushing back its plan to start production in late 2022, Reuters reported.

Reuters with additional input by GVS News Desk

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