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Tesla likely to start accepting bitcoin as payment again, says Elon Musk

The founder of the electric carmaker says coins are mined using at least 50% renewable power, sending the price up sharply

Tesla will most likely restart accepting bitcoin as payment once it conducts due diligence on the amount of renewable energy used to mine the currency, the founder and boss of the electric carmaker, Elon Musk, has said.

Musk sent the price of bitcoin into freefall in May when he said that Tesla would stop accepting the cryptocurrency for payment because it the so-called mining of the coins used too much fossil fuel-generated electricity.

But his comments at the virtual B Word conference on Wednesday sent bitcoin rising by 8% to $32,160.16, while its rival cryptocurrency ether surged 11.6% to $1,993.36.

“I wanted a little bit more due diligence to confirm that the percentage of renewable energy usage is most likely at or above 50%, and that there is a trend towards increasing that number, and if so Tesla would resume accepting bitcoin” Musk said.

“Most likely the answer is that Tesla would resume accepting bitcoin.”

The use of bitcoin to buy Tesla’s electric vehicles had highlighted a dichotomy between Musk’s reputation as an environmentalist and the use of his popularity and stature as one of the world’s richest people to back cryptocurrencies.

Some Tesla investors, along with environmentalists, have been increasingly critical about the way bitcoin is “mined” using vast amounts of electricity generated with fossil fuels.

More digital currency miners, however, are making attempts to use renewable energy to mitigate the impact on the environment.

“Tesla’s mission is accelerating the advent of sustainable energy. We can’t be the company that does that and also not do appropriate diligence on the energy usage of bitcoin,” Musk said.

Musk added that he personally owned bitcoin, ethereum and dogecoin, apart from bitcoin that Tesla and SpaceX owned.

“I might pump, but I don’t dump,” Musk said. “I definitely do not believe in getting the price high and selling … I would like to see bitcoin succeed.”

Tesla’s shares were down 0.8% at $655.30 in extended trading.

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