Elon Musk has announced that Tesla has suspended vehicle purchases using bitcoin, resulting in the cryptocurrency crashing.
Read his Tweet below.
Bitcoin prices fell considerably in the immediate aftermath of the Tesla CEO’s tweet.
The unexpected news comes after Musk has been a prominent advocate for the cryptocurrency throughout the year. In March, he announced that Tesla could be bought with Bitcoins and further clarified that Tesla would keep the money received as cryptocurrency, rather than converting it into fiat currency such as dollars.
He also announced his support for the cryptocurrency in January this year after changing his Twitter bio to ”#bitcoin”’, alongside its ”B” symbol.
In January, bitcoin was worth around $30,000 to $40,000, and was worth $57,000 by March – meaning Tesla had made between $630 million and $1.35 billion from its investment.
Elon’s tweets will not be seen favorably by bitcoin advocates, especially due to its affect on the market. However, this is not the first time the CEO has been criticized for the financial ramifications for his tweets.
The US Securities and Exchange Committee forced Elon Musk to relinquish his role as Tesla chairman in 2018 as part of a series of concessions he made, settling a lawsuit alleging he duped investors by tweeting about the price of Tesla stock.
He tweeted in August that year that he was considering taking Tesla private at $420 per share. Three years later, it was reported he was under investigation by regulators over his posts about dogecoin – a fringe cryptocurrency that also rose and dropped in value, and which has been slammed for similar environmental drawbacks as bitcoin.
Bitcoin, the ninth most valuable asset in the world, now requires nearly as much energy as the entire country of Argentina.