Dogecoin and Tesla have always had a strange love-hate relationship. Every time Elon Musk tweets or hints at DOGE, the market reacts. Sometimes it’s a quick spike, sometimes it’s a painful drop. Currently, rumors about Tesla expanding DOGE payments beyond a few commercial items are resurfacing, and if that happens, the price of DOGE could be very different.

Quick Look Back: Tesla And DOGE

Tesla first experimented with DOGE payments in 2022, allowing people to purchase items like whistles and clothing. In 2024, they expanded to more items, and each time, the market surged again.

When they added new DOGE payment options in May 2024, the price surged 21% in just one day. Even Musk's offhand comments, such as when he casually mentioned that DOGE payments would come "at some point" during an event in Berlin, were enough to push the token price higher.

So it's no surprise that the community is buzzing again. The big question: What happens if Tesla finally makes the breakthrough and allows people to buy cars with Dogecoin?

What GROK AI Found On X

According to GROK AI, most comments about X are optimistic. About two-thirds of posts are inflating the idea that if Tesla expands DOGE payments, the price of DOGE could skyrocket. Some even suggest outrageous targets like $5 DOGE if Musk integrates it into X Payments, his new move to turn X into a super app.

Others point out organizational moves, such as Bit Origin allocating $500 million in DOGE in July 2025, as signs that large sources of funds are interested in DOGE.

But not everyone believes in that hype. We have seen DOGE drop sharply even when Musk himself denied rumors, such as a 12% drop in August 2025 when he quashed all speculation. Some users argue that unless Tesla really goes all in, or ties DOGE to services like Starlink or X subscriptions, any price increase will only be temporary.

So, What Will Happen If Tesla Really Expands DOGE Payments? Let's Analyze.

Bull Case 🚀

If Tesla accepts DOGE for all types of vehicles and products, especially if tied to X Payments, things could get chaotic. Based on previous reactions, the price of DOGE could easily rise to $0.50 or even $5 in just a few months. It sounds crazy, but remember, Dogecoin increased by 10,000% in 2021 from a much lower price.

Average Case ⚖️

A smaller rollout, such as only accepting DOGE for CyberTruck or a limited product line, could create a quick price surge but not a strong rally. In this scenario, the price of DOGE could reach $0.20–0.40 before stabilizing around $0.25 as the hype subsides. This aligns with the volatility we saw in 2024.

Bear Case 📉

Of course, all of this could just add to the noise. If Tesla delays, denies, or the market simply cools off, the price of DOGE could drop. A drop in DOGE price to $0.05–0.10 would not be impossible if the hype fizzles out and traders lose patience.

Dogecoin has always been associated with Musk, Tesla, and now X. Even rumors are enough to push prices soaring or crashing, and the expansion of DOGE payments could indeed be very significant.

Currently, DOGE is trading at $0.20, which means the profits from a major announcement could be substantial, but the downside risks are also significant.

So whether you believe DOGE can become "the people's money" through Tesla and X or think it's just another hype cycle waiting to fizzle out, one thing is clear: if Tesla makes the next move, the market will not remain silent.