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Elon Musk, Tesla's CEO, plans to reinstate Dogecoin as a payment option on Tesla's website, following his recent victory in an insider trading lawsuit. Musk's renewed interest in the cryptocurrency comes amid Dogecoin's volatile market performance and ongoing discussions about its future use in commerce.
Elon Musk Hints at Dogecoin Comeback for Tesla Payments After Legal Victory Over Manipulation Claims
Tesla's CEO, Elon Musk, plans to reinstate Dogecoin as a payment method for merchandise purchases on its website. Musk's most recent comments regarding Dogecoin were published on the social media platform X following the cryptocurrency collapse that followed the Federal Reserve's most recent interest rate rise cycle. These are among the few of their kind.
During the pandemic, the entrepreneur had become one of the most ardent advocates for Dogecoin and Bitcoin. According to Wccftech, his rocket company, SpaceX, eventually accepted payment in Dogecoin for a mission to the Moon that has yet to come to fruition, and his car company disclosed that it was holding Bitcoin.
Musk's most recent statements were made after his victory in a lawsuit filed by investors in June last year, which accused him of insider trading. Dogecoin investors claimed that Musk had manipulated the currency by inflating Dogecoin prices through various methods, including his X posts and television appearances. They cited the evidence of price manipulation as Musk's decision to sell $124 million of cryptocurrency after he altered Twitter's logo to that of the currency, which caused Dogecoin's price to increase by 30%.
Nevertheless, on August 29, U.S. District Judge Alvin Hellerstein dismissed the claims, stating that Musk's statements were unfalsifiable. The investors had claimed that Musk had also traded Dogecoin through various entities, including Tesla. However, the judge was not convinced that the actions constituted insider trading or market manipulation.
Musk Eyes Dogecoin Revival for Tesla Payments Amid Bitcoin's Market Resurgence
Musk is now interested in reintroducing Dogecoin as a payment option for purchases on Tesla's website, as the lawsuit has been resolved. He commented on X; however, Tesla's decision to reinstate the policy remains uncertain.
Despite Musk's automotive company's playful use of Dogecoin, it has demonstrated a more serious interestin Bitcoin. In February 2021, the organization acquired an impressive $1.5 billion worth of Bitcoin, resulting in an average price of $38,000 per coin. Bitcoin's price experienced a 64% decline from March 2021 to the December 2022 low. However, Bitcoin has since rebounded as the market prepares for the Federal Reserve's monetary policy easing and as it becomes accessible for trading through various exchange-traded funds.
Although Tesla's SEC filings do not explicitly mention Bitcoin, they disclose substantial net digital assets. The carrying value of the assets was maintained at $182 million throughout the first and second quarters of 2024, and they are listed at both fair value and carrying value. Nevertheless, the fair value was $821 million during the April quarter and decreased by 12% or $99 million in the subsequent quarter. Tesla sold three-quarters of its Bitcoin holdings in Q2 2022, and the currency has experienced a significant 175% increase in value since the quarter's conclusion.
Tesla's website was discreetly updated in May to indicate that certain products were eligible for purchase with Dogecoin, resulting in a 20% increase in Dogecoin's value. During his March visit to Germany, Musk also expressed his willingness to consider allowing consumers to purchase his cars through the currency.
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