Tech Giant Tesla refuses to accept crypto payments for its cars
Tesla will stop sales of vehicles using bitcoin because of the effects of the mining of Cryptocurrency on the environment. On Wednesday, Chief Executive Elon Musk announced this news which resulted in dropping prices of Cryptocurrency as well as Tesla shares.
Elon Musk posted on Twitter that Tesla suspended its electric car purchases using bitcoin. He said that they are concerned about increasing fossil fuels in use for bitcoin transactions and their mining. Musk highlighted coal, which is considered one of the worst emissions of any energy. However, he added that on many levels, Cryptocurrency is a good idea. He and his team believe that crypto has a great future, but this should not cost the environment.
Musk said that currently, Tesla is not planning to sell any of the bitcoin that they own. They will use bitcoins once the mining is more sustainable. He added that the company would continue searching for other cryptocurrencies that use environmental-friendly techniques and less energy for mining.
According to Coindesk data, Bitcoin prices fell about 15%. As of 12 p.m. Eastern, bitcoin was 8.4% at 50,000, which fell from about $54,800 before the tweet. Tesla shares also declined in after-hours trading by 1.4%.
In early February, Tesla bought $1.5 billion worth of Cryptocurrency. It happened after Musk showed his interest in bitcoin by tweeting on his personal account.
Tesla and CFO Elon Musk changed titles to Master of Coin and Technoking
Elon Musk took a new title at Tesla.
As listed in a new SEC filing, CFO Zach Kirkhorn and CEO Elon Musk changed the titles to Master of Coin and Technoking of Tesla. This filing also notes that Kirkhorn and Musk will maintain their CFO and CEO positions for the sake of clarity.
During the last month, the company updated its investment policy to provide greater flexibility to maximize returns on its cash, not necessary to maintain functional mobility and further diversification. This cash`s position may be invested in other reserve assets that include digital assets, gold exchange-traded funds, gold bullion, and many more. More precisely, Tesla invested about $1.5 billion in bitcoin under this policy.
