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Elon Musk tanks his own stock

By Tatenda Marwodzi

CEO and Co-founder of Tesla Inc, Elon Musk, has caused a stir after tanking Tesla stock by close to $14 billion. In a tweet dated 1 May 2020, Mr Musk claimed that Tesla stock was currently overvalued. “Tesla stock is overpriced,” he tweeted and within hours Tesla stock dropped from $781.88 to $731.96 per share.

As a stumped to short the company’s stock took place those investors that kept holding Tesla stock cried fowl after losing thousands of dollars. “I’ve just lost $10 000 because of this tweet,” tweeted one investor. A couple more aired their grievances on his twitter page.

Musk himself lost $3 billion off his own stake. Mr Musk is certainly not new to controversy, in 2018 he was fined $20 million for releasing a speculative tweet about Tesla after which he promised to always have lawyers check his tweets before posting.

Unfortunately or fortunately for him, he still enjoys his freedom of speech when it comes to public statements and his followers have become accustomed to his outbursts. “We view these comments as tongue in cheek, Elon being Elon,” commented securities analyst Daniel Ives. Mr Musk has a tendency to stir conversation by tweeting what some would consider ridiculous. Just a few days ago he tweeted that he was getting rid of all his possessions including his house.

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