According to the statement from the Chief Executive, Elon Musk, “Tesla will no longer be accepting Bitcoins”.
Bitcoin fell by 10% soon after Musk tweeted, while Tesla shares also dipped.
Tesla’s announcement in March that it would accept the cryptocurrency was met with an outcry from some environmentalists and investors.
The electric carmaker had in February revealed it had bought $1.5bn (?1bn) of the world’s biggest digital currency.
However, in a statement shared via Twitter, Tesla?s self-styled ?technoking? said that while he supported the concept of cryptocurrency it ?cannot come at great cost to the environment?.
Musk said: ?We are concerned about rapidly increasing use of fossil fuels for Bitcoin mining and transactions, especially coal, which has the worst emissions of any fuel.