Elon Musk, the CEO of Tesla and SpaceX, has once again thrown his weight behind Dogecoin (DOGE), suggesting that Tesla should accept the meme cryptocurrency for vehicle payments. Speaking at an event at Tesla's Giga Berlin factory on March 13, 2024, Musk responded to an audience question by saying: 'At some point, I think we should enable that... Dogecoin to the moon.' The remark, captured on video and widely shared, reignited speculation about the future of crypto payments at the electric carmaker.
Musk highlighted that Tesla already allows DOGE payments for certain merchandise on its website, which he called 'cool.' However, the prospect of using DOGE to purchase a Tesla car — which can cost tens of thousands of dollars — remains a distant but tantalizing possibility for the crypto community.
The Story Behind Musk's Dogecoin Advocacy
During the same event, Musk offered a rare glimpse into how he became an avid supporter of Dogecoin. 'When I was walking around the factory at Tesla, some people were just working the line, and they said: ‘Can you please support DOGE?’' Musk recounted. 'Also, I was at SpaceX and just working in the factory, and some regular guys said, ‘Hey, can you support DOGE?’' He concluded: 'Lots of rich people were sporting Bitcoin... But people on the line want me to support DOGE. Dogecoin is the people’s crypto. So I will support it.'
This narrative — contrasting the 'elite' appeal of Bitcoin with the 'grassroots' nature of Dogecoin — has become a central theme in Musk's pro-DOGE rhetoric. The billionaire has long been known as the 'Dogefather' in crypto circles, and he previously disclosed that he personally holds Dogecoin, Bitcoin, and Ether. In January 2024, he confirmed he still owns 'a bunch of Dogecoin,' though he denied being a major whale. On-chain data shows Tesla holds about 11,509 BTC and SpaceX holds 8,285 BTC. Tesla briefly accepted Bitcoin for car payments in 2021 before suspending the practice due to environmental concerns.
Legal Challenges and Investor Backlash
Musk's enthusiastic promotion of Dogecoin has not been without controversy. A group of DOGE investors who suffered financial losses filed a massive $258 billion lawsuit against him, accusing the billionaire of manipulating the cryptocurrency market through his public endorsements. The case, which remains ongoing, highlights the tension between Musk's freewheeling style and the regulatory scrutiny that surrounds crypto promotions. Musk has previously dismissed the lawsuit as baseless, but the legal pressure underscores the risks of celebrity-endorsed meme coins.
Beyond the courtroom, Musk's Dogecoin advocacy has also sparked debates about the role of social media influencers in driving speculative asset prices. Dogecoin, originally created as a joke, has seen extreme volatility tied to Musk's tweets and public appearances.
Historical Context and Future Possibilities
This is not the first time Musk has declared 'Dogecoin to the moon.' He made a similar statement in November 2022, and in June 2022 he vowed to keep buying and supporting DOGE. In May 2022, he opined that Dogecoin has potential as a usable currency. Last year, he re-offered to eat a McDonald’s Happy Meal on TV if the fast-food chain would accept Dogecoin for payments — a challenge that remains unanswered.
The current momentum around Musk's latest comment has already triggered a modest price rally in DOGE, though its long-term trajectory remains uncertain. For now, the crypto world awaits concrete steps from Tesla — perhaps a software update allowing DOGE checkout for electric vehicles — while Musk continues to brand himself as the champion of the 'people's crypto.' Whether this will ultimately lead to mass adoption or simply another speculative frenzy is a question that only time — and Musk's next tweet — will answer.