Tesla updates payment methods to include DOGE, Dogecoin price rises 6%

■Tesla has integrated DOGE token in its payment options with a full FAQ on this service offering.

■Users will need a “Dogecoin wallet to purchase using DOGE on the Tesla Shop.

■Dogecoin price has surged 6% on this announcement.

Tesla Inc., Elon Musk’s American multinational automotive and clean energy company headquartered in Austin, Texas, is the latest catalyst for Dogecoin (DOGE) price rally.

Tesla Shop adds DOGE to payment option

Tesla, which “designs, manufactures and sells battery electric vehicles, stationary battery energy storage devices from home to grid-scale, solar panels and solar shingles, and related products and services,” has added DOGE to its payment methods.

#Tesla has updated payment methods to include DOGE$DOGE has moved more than 40% in the last 4 days. Was it an anticipatory move?

— Kyledoops (@kyledoops) May 4, 2024

“Look for the Dogecoin symbol next to the “order” button for Dogecoin-eligible products,” reads the first response to the first question on the FAQs section on the website.

According to the support page, anyone looking to purchase a product on the Tesla shop (Provided the product is supported by this payment option), must first have a “Dogecoin wallet.”

There is also a strong disclaimer, indicating, “It is the responsibility of the purchaser to ensure that Dogecoin is transferred to Tesla’s Dogecoin wallet accurately.”

Another important element in the guidelines is that the Dogecoin network will charge network fees for every time a payment is made in DOGE token. An incorrect amount of DOGE transferred, will see the order canceled. A key highlight in this regard is that “If an order is overpaid in Dogecoin, the overpayment amount will not be refunded to the original form of payment.”

Also, Tesla shop will not accept payments from multiple wallets for a single order.

Dogecoin price reacted to this announcement with a 6% surge, at the time of writing, DOGE is selling for $0.1601.

DOGE/USDT 1-day chart

What this integration means for DOGE and crypto at large

Tesla accepting Dogecoin as a form of payment could have several implications for DOGE and the broader cryptocurrency space:

Enhanced popularity for Dogecoin

Tesla's acceptance of Dogecoin could further boost its popularity and legitimacy, potentially driving up its value and trading volume.

Market speculation

The announcement of Tesla accepting Dogecoin may lead to increased market speculation and volatility in the crypto space. Traders and investors could react to this news by buying or selling Dogecoin based on their perceptions of its future potential.

Influence on other cryptocurrencies/ increased mainstream adoption

Tesla's acceptance of Dogecoin could set a precedent for DOGE and other cryptocurrencies to be considered as payment options by companies and merchants. This could lead to increased competition among cryptocurrencies to be adopted for real-world transactions.

It could also signal a growing acceptance of cryptocurrencies by mainstream companies and institutions. This move could encourage other businesses to consider adopting cryptocurrencies as a payment option. The long-term impact of this is a potential wider adoption and integration of digital assets into the economy.