Tesla CEO Elon Musk sent Bitcoin investors into a frenzy in March when he announced that people in the U.S. would be able to buy one of his electric vehicles with the leading cryptocurrency. Now, just a month and a half later, the billionaire has reneged on the novel payment option due to environmental concerns stemming from Bitcoin’s high energy usage during mining and transactional operations. Bitcoin prices dropped over 10 percent following the announcement.
Tesla & Bitcoin pic.twitter.com/YSswJmVZhP— Elon Musk (@elonmusk) May 12, 2021
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.