Investor's Corner

Elon Musk says Tesla will resume accepting Bitcoin under one condition

(Credit: Saturday Night Live/Twitter)

Elon Musk says that Tesla would resume accepting Bitcoin for its products again if the cryptocurrency transitions to at least 50% renewable energy for mining and transactions.

Musk made the statement during The B Word Conference on Wednesday, where he joined Moderator Steve Lee, Twitter CEO Jack Dorsey, and ARK Invest’s Cathie Wood for a conversation regarding Bitcoin and other cryptos, including Dogecoin and Ethereum.

Tesla shocked investors and enthusiasts earlier this year when it announced the purchase of $1.5 billion worth of Bitcoin. The company made the purchase in December, and it ultimately opened the door for Tesla to accept Bitcoin as a payment method for its electric cars and sustainable energy products. In March, Tesla officially started accepting Bitcoin as a payment option. Only buyers in the United States had the capability to purchase a vehicle with Bitcoin, and the option was going to be extended to international customers “later this year,” Musk said.

However, the option to purchase a vehicle or solar energy system was short-lived. On May 12, Musk announced Tesla had suspended vehicle purchases using Bitcoin. “We are concerned about rapidly increasing use of fossil fuels for Bitcoin mining and transactions, especially coal, which has the worst emissions of any fuel,” Musk said in a statement. During Wednesday’s conference, Musk reiterated that coal’s environmental impact was too negative to continue mining or accepting Bitcoin.

Musk, a public supporter of many cryptos, said that he personally owns Bitcoin, Dogecoin, and Ethereum. His largest holding is Bitcoin, he said. He is ready to accept the crypto for Tesla vehicles as soon as transactions and mining can be completed through more sustainable options.

“Most likely, Tesla would resume accepting Bitcoin,” Musk said. “As long as there is a conscious effort to move Bitcoin miners toward renewables, then Tesla can support that,” he added. It looks like Bitcoin is shifting a lot more toward renewables and a bunch of the heavy-duty coal plants that were being used…have been shut down.”

Musk also confirmed that SpaceX, which is currently not a publicly traded company, also owns Bitcoin. He has no plans to sell any Bitcoin out of his personal portfolio, and he said Tesla and SpaceX would also maintain their status as having “diamond hands.

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Elon Musk says Tesla will resume accepting Bitcoin under one condition
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