Tesla has “suspended vehicle purchases using bitcoin,” out of concern over “rapidly increasing use of fossil fuels for bitcoin mining,” according to a tweet from CEO Elon Musk on Wednesday.
The price of bitcoin dropped about 5% in the first minutes after Musk’s announcement.
In an SEC filing in February, Tesla revealed that it bought $1.5 billion worth of bitcoin and it may invest in more of bitcoin or other crypto currencies in the future.
At that time, the company said it would start accepting bitcoin as a payment method for its products.
Support for cryptocurrency from Tesla contributed to the prices of cryptocurrencies, including bitcoin and dogecoin, skyrocketing in recent months.
Here was Musk’s full announcement:
Mainstream investors and some corporate buyers including Tesla, Square, Metromile and Nexon have flocked to bitcoin, viewing the digital currency as a potential inflation hedge while central banks print money to relieve coronavirus-distressed economies.