Tesla stock and bitcoin drop after Elon Musk says car sales with crypto will be halted due to energy usage of mining

Tesla Inc. will stop selling cars using Bitcoin due to the environmental impact of cryptocurrency mining, Chief Executive Elon Musk said on Wednesday, and prices on Tesla stock and the cryptocurrency fell immediately afterwards.

“Tesla has suspended Bitcoin vehicle purchases” Musk posted on Twitter. “We are concerned about the 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 bright future, but it cannot result in high environmental costs,” he continued.

Musk said Tesla would not sell Tesla’s Bitcoin and use it again “once mining moves to more sustainable energy.” In the meantime, he said Tesla will look into other cyrp currencies that use less energy for mine.

Bitcoin prices
BTCUSD, -4.83%
dropped about $ 2,000 per coin from about $ 54,700 to about $ 52,600 after the tweet. Tesla stocks
TSLA, -4.42%
declined less than 1% in after-hours trading.

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