Root, Al.Barron's (Online); New York (May 13, 2021).
Tesla won't accept Bitcoin for vehicle purchases anymore because of environmental reasons, CEO Elon Musk tweeted late Wednesday, shaking up the world of cryptocurrencies for the second time in less than a week.
Musk told his more than 54 million followers that the electric vehicle pioneer is concerned coal being used to generate electricity for Bitcoin mining. Many cryptos are created—or mined in industry jargon—by computers that use electricity.
But Musk also indicated that Tesla (ticker: TSLA) won't sell any of its Bitcoin holdings, which amounted to almost $2.5 billion as of March 31.
Musk's tweet was sent shortly after 6 p.m. EDT. About an hour later, his tweet had 128,000 likes and Bitcoin prices had dropped 1.9% to $52,539.90. Just before 8:30 p.m., it was down 15% at $47,975.80
Over the weekend, Musk rattled the market with his appearance on Saturday Night Live . He joked that Dogecoin was a hustle. The crypto is down 45%, to 40 cents, from a high of 73 cents in the days leading up to the show.
After the hustle joke, Musk ran a Twitter poll asking if Tesla should accept Dogecoin. More than 78% of the nearly 4 million voters answered yes.
Tesla stock has been sliding as well. Shares dropped 4.4% on Wednesday and shares are down more than 12% so far this week. The S&P 500 and Dow Jones Industrial Average are down 4% and 3%, respectively, week to date. It was down another 1.2% in after-hours trading.
Higher-than-expected inflation data sent the entire U.S. market tumbling on Wednesday. The Nasdaq Composite, for instance, fell 2.7%.
Write to Al Root at firstname.lastname@example.org
Tesla Will Stop Accepting Bitcoin for Environmental Reasons. Bitcoin Is Getting Crushed.
Credit: Al Root