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Dogecoin, which Tesla CEO Elon Musk called his “fav cryptocurrency” back in 2019, might be making a return as a payment option on the electric vehicle maker’s website.
In January 2022, Tesla began accepting the meme token as a payment option for certain merchandise such as apparel and accessories in its online store. However, Dogecoin mysteriously disappeared as a payment option, leading fans to inquire on social media about its possible return.
Musk, who owns X.com and a majority of Tesla stock, has shown interest. When an X user asked if Tesla would reinstate Dogecoin as a payment option for merchandise, Musk simply replied, “Me.”
Currently, Tesla’s store only accepts credit cards. It remains unclear when or why Dogecoin stopped being a payment option. The Austin, Texas-based company never broadly accepted Dogecoin for car payments, and there wasn’t a formal announcement about removing it as a payment option.
Musk and Environmental Concerns
Tesla’s crypto-as-a-payment policy has been confusing, especially considering that in 2021, Musk posted that the company intended to use Bitcoin for transactions as soon as mining transitions to more sustainable energy.
Tesla & Bitcoin
Cryptocurrencies like Bitcoin and Dogecoin require significant amounts of electricity to process transactions and ensure their respective networks remain secure. Environmentalists and investors have pointed out that the carbon footprint associated with cryptocurrency transactions seems at odds with Tesla’s clean energy initiatives.
Additionally, Musk is a supporter of former President and current Republican nominee Donald Trump, who pledges to roll back clean energy initiatives if re-elected.
Legal Issues
Musk’s affirmation for Dogecoin came less than 24 hours after U.S. District Judge Alvin Hellerstein dismissed a federal lawsuit that accused the Tesla chief of defrauding investors through insider trading and market manipulation of Dogecoin.
The suit alleged that Musk misused his position as the world’s richest man to inflate the price of Dogecoin by “36,000%” and then let its price crash, leading to losses for investors. The plaintiffs argued that Musk’s actions could be justified as a “Dogecoin Pyramid Scheme,” where he promoted the cryptocurrency to profit from the volatility he allegedly created.
The price of DOGE once reached an all-time high of $0.73 but has yet to reach those price levels again. Hellerstein stated that any statements made about Dogecoin are “aspirational and puffery, not factual” and that “no reasonable investor could rely upon them” for making investment decisions.
The judge also found that the facts did not support the plaintiffs’ allegations of a “pump and dump” scheme, market manipulation, and insider trading, emphasizing that it was “not possible to understand the allegations that form the basis” of these claims.
Whether the dismissal of the Dogecoin lawsuit will lead to Tesla fans being able to use the dog-themed coin as a payment option again remains to be seen.
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