Elon Musk is thinking of taking dogecoin as payment for Tesla cars

Elon Muske Tesla dogecoin

Consideration comes despite Musk’s own admission that dogecoin is a ‘hustle’

Eccentric billionaire Elon Musk is considering accepting dogecoin as payment for products at electric car firm Tesla, months after introducing payment acceptance for bitcoin.

Musk, who is one of the meme coin’s most vocal and prominent supporters, asked his Twitter followers whether they would like Tesla to accept dogecoin in future.

As of 9:23am BST on 11 May — just 10 minutes after the tweet was posted — Musk’s followers had already cast more than 378,000 votes. Almost 80% had voted in favour of Tesla accepting the coin.

It comes after he appeared on US television show Saturday Night Live over the weekend, in which he suggested that dogecoin is simply “a hustle”.

Following his performance, Musk announced that his space exploration firm SpaceX plans to launch a satellite named Doge-1 to the moon next year — referencing the dogecoin community’s motto of sending the cryptocurrency’s price “to the moon”. The mission will be paid for in dogecoin, Musk said.

Dogecoin’s price swung wildly in response, dropping as low as $0.41 during his SNL performance. Following Musk’s 11 May tweet about the cryptocurrency, dogecoin moved from negative territory to rise more than 1.6% at about $0.54.

Tesla, which started accepting bitcoin as payment for its products in March, is one of the few major corporations to hold billions of dollars’ worth of bitcoin on its balance sheet as an investment vehicle.

Those holdings increased by more than $1bn in fair market value by the same time, Tesla said in a filing, reaching $2.48bn at the end of March.

It also registered a net gain of $101m from sales of bitcoin during the quarter — around 10% of its stake.

Tesla’s share price closed down more than 6% on 10 May, and appeared down more than 4% in pre-market trading on 11 May. The drop followed reports that the firm had abandoned its intention to buy land in Shanghai for its factory, following increased tensions between the US and China.

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