Tesla’s CEO and Founder, Elon Musk, has announced that the company has suspended the use of Bitcoin as a valid payment method for its vehicles due to concerns about the use of fossil fuels for Bitcoin mining.
Musk’s announcement came in the form of a Tweet in which he stated that the company was “concerned about rapidly increasing use of fossil fuels for Bitcoin mining and transactions, especially coal, which has the worst emissions of any fuel.”
Tesla & Bitcoin pic.twitter.com/YSswJmVZhP
— Elon Musk (@elonmusk) May 12, 2021
The announcement also states that Tesla is still committed to Bitcoin and will be keeping it in its portfolio with no plans to sell.
The company intends to use its holdings for transactions once that “mining transitions to more sustainable energy” but will be looking at other cryptocurrencies that use less than 1% of Bitcoin’s energy requirements per transaction.
The billionaire, who has been one of the most vocal defenders of cryptocurrency, also pointed out that crypto is “a good idea on many levels” and that the company still believes in its “promising future”, but the environmental concerns surpass that.
As a company that heavily markets to those concerned about the environment, Tesla received a lot of criticism from both the public and its shareholders for its investment and support of Bitcoin, which has quite controversial at the time.
A Drastic Change in Position by Tesla
The electric vehicle manufacturing company had originally made the news back in late March of 2021 when it started accepting Bitcoin payments for its different products, just 1 month after investing $1.5 billion in Bitcoin as an, “alternative reserve assets to provide flexibility in investments,” according to a Securities and Exchange Commission filing.
The cryptocurrency investment was seen as one of the causes of the record quarterly earnings that Tesla reported in April, the highest ever, accounting for $438 million. According to the New York…