Dogecoin, a meme-based cryptocurrency, soared on Friday after Tesla CEO Elon Musk announced that the electric manufacturer will accept it as payment for items. Musk tweeted, "Tesla goods can be purchased with Dogecoin."
His tweet in mid-December stating that such usage of Dogecoin will be permitted on a trial basis propelled the cryptocurrency up more than 20%. After Friday's tweet, Dogecoin, a popular cryptocurrency among retail investors, soared 18 percent to above $0.2.
Musk's tweets about cryptocurrencies, including one in which he referred to it as the "people's crypto," boosted the meme coin, causing it to rise about 4,000 percent in 2021. Musk said this in answer to a query on when the company's electric automobiles will be available in the country.
Last year, Tesla announced its intention to start selling imported automobiles, and the company has been pressing the government to lower import duties on electric vehicles (EVs) before entering the market. In his Twitter statement, Musk did not specify the "challenges" being worked on.