Tesla stock was about ten percent less after automaker boss Elon Musk announced on Twitter that the stock’s value was too high. Musk is therefore criticized again.
Tesla boss Elon Musk has slashed the market value of the multi-billion electric car maker with a series of weird tweets. Musk wrote on Friday that he believed Tesla’s stock price was too high. The billionaire also tweeted: “I sell almost all material goods” and that he will no longer own a home. Tesla stock then ended the trading day with a minus ten percent.
I sell almost all physical goods. Will not own any house.
– Elon Musk (@elonmusk) May 1, 2020
Elon Musk in the center of attention of the US stock market regulator
Asked by the Wall Street Journal if the tweets were a joke and if the company approved of them before they were published, Musk responded by email with a “no,” the newspaper reported.
It could bring the Tesla boss back to the center of attention of the US stock market regulator SEC. An agreement with the authorities stipulates that Musk must have his tweets approved by the company. The trigger was Musk’s Twitter announcement in the summer of 2018 that he was considering taking Tesla off the stock market and that funding was secured. The SEC, after an investigation, found Musk had no firm funding commitments and enforced Twitter’s restrictions.
Tesla boss still causing a stir with Twitter appearances
Musk is also known to cause a stir and confusion with bizarre appearances on Twitter. After the SEC deal, he wrote that he was Tesla’s “new nothing” and therefore sparked speculation that he had stepped down from the management position. On April 1 last year, he tweeted a photo jokingly about Tesla bankruptcy. An important question now might be whether the indication that this was Musk’s opinion relieved him of the release requirement.
The action comes, of course, as Tesla entered the economically calm fairway after heavy losses. On Wednesday, the company celebrated its longest period of profitability since its inception in 2003 with the third consecutive quarterly profit. The share price has risen more than 80% since the start of the year, despite heavy losses on Friday, despite the corona pandemic affecting the auto industry accused.