Dogecoin skyrockets as Elon Musk announces that Tesla would accept it as payment for goods

Musk, a frequent Twitter user and cryptocurrency proponent, polled Twitter followers in May to see whether they wanted Tesla to accept dogecoin.

Elon Musk, the CEO of Tesla Inc, said on Tuesday that the electric automaker will accept dogecoin as payment for items for a limited time as a test, propelling the meme-based cryptocurrency up 24%.

In a tweet, Musk wrote, "Tesla will make some items buyable with Doge and see how it goes."

Following the tweet, Dogecoin, a popular cryptocurrency among retail investors, soared to $0.20. According to data from the Coinbase website, Musk's tweets about cryptocurrencies, including one in which he labeled it the "people's crypto," have helped the meme coin rise 5,859 percent in the last year.

Musk did not clarify what products might be purchased using dogecoin, which range in price from $50 to $1,900.

Tesla sells t-shirts, 'Giga Texas' belt buckles, and miniature replicas of its cars, as well as unique limited-edition goods like the 'Cyberwhistle,' which is based on the company's much-anticipated Cybertruck. It just released a kid's quad bike called the 'Cyberquad,' which is based on the truck.

Musk, a proponent of cryptocurrencies, has frequently praised dogecoin and said that it is superior for transactions, most notably in an interview with Time magazine, which named him "Person of the Year" for 2021 on Monday.

"Bitcoin is not a good transactional money alternative," he stated. In a Twitter poll in May, Musk asked people if they wanted Tesla to accept dogecoin. During his guest-hosting stint on the "Saturday Night Live" comedy sketch TV show in May, he referred to dogecoin as a "hustle."

Musk, who has more than 66 million Twitter followers, has been heavily involved in this year's retail trading craze, tweeting about cryptocurrencies and helping to drive up their values.

The electric vehicle manufacturer has stopped taking bitcoin for automobile purchases, less than two months after starting to accept the world's largest digital currency.