Tesla CEO Elon Musk speaks at a delivery ceremony for Tesla China-made Model 3 in Shanghai, east China, Jan. 7, 2020.
Ding Ting | Xinhua News Agency | Getty Images
The billionaire entrepreneur announced on Twitter on Wednesday night that Tesla was indefinitely suspending the acceptance of bitcoin as a payment, saying he was concerned by the “rapidly increasing use of fossil fuels for Bitcoin mining and transactions.” The price of bitcoin dropped below $50,000 on Thursday morning after Musk’s tweet, wiping out more than $360 billion market value from the crypto asset.
Tesla shares were also lower in premarket trading in a continuation of their big losses this week.
Wedbush’s Dan Ives, who has an outperform rating on Tesla, said in a note that the move was a “shocker” and could increase volatility for the electric vehicle stock.