At the weekend, Elon Musk and a few other high profile celebrities decided to snap up Dogecoin in what can best be described as a little but of social media and meme tomfoolery. Earlier today, however, Tesla made a far more serious cryptocurrency play by investing in $1.5 billion in Bitcoin.
Naturally the value of the volatile crypto increased on the back of the move, 10 percent to be precise, and Tesla has confirmed that it plans to start accepting cryptocurrencies as a form of payment for its electric vehicles and associated services.
As a recent Securities and Exchanges Commission (SEC) filing explains, Tesla says it made the investment as it offered, “more flexibility to further diversify and maximize returns on our cash.”
Should Tesla follow through with its crypto plans, it would also be the first carmaker in the world to formally do so, which is a nice feather in the cap for the innovative company.
Perhaps more interesting though, for us at least, is whether Musk will be scrutinised in terms of his behaviour on social media. The aforementioned surge in Dogecoin is one of several instances in recent weeks where Musk has been tweeting rather vigorously about cryptocurrencies, and Bitcoin in particular, even adding it to his Twitter bio for some reason.
While the SEC does not have specific purview when it comes to cryptocurrencies, it does have a recent past with Musk and his dealings with Tesla while using Twitter as an online podium.
Either way, those Musk acolytes who rallied behind his Dogecoin push at the weekend, will certainly be raising a few eyebrows at his Tesla crypto play today.