Tesla has suspended vehicle purchases using Bitcoin, Chief Executive Elon Musk said on Twitter. The cryptocurrency lost about 5% in value minutes after the tweet.
“We are concerned about rapidly increasing use of fossil fuels for Bitcoin mining and transactions, especially coal, which has the worst emissions of any fuel, Cryptocurrency is a good idea on many levels and we believe it has a promising future, but this cannot come at great cost to the environment,” a statement posted by Musk said. “Tesla will not be selling any Bitcoin and we intend to use it for transactions as soon as mining transitions to more sustainable energy. We are also looking at other cryptocurrencies that use <1% of Bitcoin’s energy/transaction.”
Tesla disclosed in February that it bought $1.5 billion worth of Bitcoin, then showed during it’s Q1 update that the company cashed in on a $101 million profit. While Tesla will no longer accept Bitcoin, Musk said it plans to hold the Bitcoin it owns.
Tesla Chief Executive Elon Musk has been hyping crypto in recent months. In particular, he has promoted Bitcoin and Dogecoin. Tesla was also the first major automaker to allow bitcoin as payment.