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Tesla Stock’s Future Looks Bright Thanks to Dogecoin Merch Payments


Exactly a month ago Dogecoin (CCC:DOGE-USD) prices soared following an announcement by Elon Musk. The man hailed as the ‘Dogefather’ has confirmed that You’re here (NASDAQ:TSLA) was going to start accepting the popular meme coin as payment for company merchandise. This news sent the price of Dogecoin soaring as investors pondered what the future would bring to both the original coin and Tesla stock. Today, as we watch Dogecoin prices skyrocket on the first day Tesla accepted it, we have our answer. And while the patterns we’ve seen in Tesla shares haven’t been all that exciting, there’s no reason for investors to be concerned.

Source: Tudoran Andrei / Shutterstock.com

What is happening with Tesla shares

The first two weeks of 2022 have been turbulent for the electric vehicle (EV) innovator. Today’s news didn’t help in that regard. As of this writing, Tesla stock is down 0.83% for the day and looks set to end this week on a low note. However, the gains it saw a few days ago keep it in the 2.4% green for the week. Stocks remain up nearly 7% for the month, boosted by the growth the stock saw earlier in the new year.

Dogecoin, on the other hand, reacted well to the news of the day. It is currently up almost 9%. Despite its plunge yesterday, the crypto remains in the green for the week at over 24%. Considering the fall Dogecoin suffered on January 10, this is good news for investors.

why is it important

To the untrained eye, this news may seem to only benefit one party involved. However, everyone should remember that Tesla stock is currently struggling with other market forces. The general momentum is not in his favor today. As was the case yesterday, other producers of electric vehicles Rivien (NASDAQ:BANK) and Fisker (NYSE:FSR) also saw their shares decline throughout the day. Additionally, Tesla’s recent decision to delay the launch of its electric Cybertruck is raising eyebrows among investors.

While EV enthusiasts aren’t happy about having to wait another year for the Cybertruck, that shouldn’t worry investors. Musk is notorious for missing deadlines, but through it all, Tesla has maintained its place at the front of the EV race. And despite its hectic December, Tesla stock has remained in the green by more than 57% for six months. Investors have reason to be optimistic, especially if the company secures its expansion in India. If it involves bad public relations, Tesla is very likely to get rid of it easily.

Although it doesn’t get a lot of coverage, Tesla does offer a number of company-themed products. Now that it accepts DOGE, it has opened up to a whole new range of buyers. Like InvestorPlace’As Joel Baglole recently explained, “A Tesla Cybertruck-shaped whistle costs 300 Dogecoin. At current prices, that works out to about $59. A commemorative belt buckle to celebrate Tesla’s Gigafactory in Texas can be purchased for 835 DOGE, or about $164.

What this means for Tesla stock

Although the merchandise does not represent a significant portion of Tesla’s sales, accepting Dogecoin will only increase its social media traction. Dogecoin is the meme token that started the pupcoin frenzy – it’s well known to be powered by a mighty digital army. When the Dogecoin army starts tweeting, it can help drive up prices. How it looks from here, Tesla can only see its merchandise sales and social media buzz grow.

Perhaps more importantly, this move by Tesla helps give Dogecoin more credibility. Musk tweeted that he owned the crypto, but accepting it as payment demonstrates that the coin meme has real-world utility.

At the date of publication, Samuel O’Brient held (neither directly nor indirectly) any position in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to InvestorPlace.com Publication guidelines.


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