Elon Musk, CEO of Tesla, said on Twitter on Wednesday that Tesla has “suspended the purchase of vehicles with Bitcoin” over concerns over the “rapidly increasing use of fossil fuels to mine Bitcoin”.
In a February SEC filing, Tesla announced that it had purchased $ 1.5 billion worth of Bitcoin and may invest more in Bitcoin or other cryptocurrencies in the future.
At that point, the company announced it would accept Bitcoin as a payment method for its products.
Tesla’s support for cryptocurrency helped the prices of cryptocurrencies, including Bitcoin and Dogecoin, skyrocket in recent months.
Here was Musk’s full announcement via tweet:
Mainstream investors and some corporate buyers, including Tesla, Square, Metromile, and Nexon, have come to Bitcoin, viewing the digital currency as a potential inflation hedge, while central banks are printing money to relieve coronavirus-hit economies.
Even big Wall Street banks like Goldman Sachs and Morgan Stanley have tried to provide Bitcoin exposure to their wealthy clients.
But some investors, like Softbank founder Masayoshi Son, are still not buying into the crypto craze.
“There’s a lot of discussion about whether it’s a good thing or a bad thing, what’s the real value, or if it’s a bubble. Honestly, I don’t know,” Son said at a recent earnings conference.
This is a developing story. Please try again to get updates.