Chuks is a blockchain enthusiast and finance researcher that has covered the crypto sphere for several years. He believes that the evolving technology would change how we do business.
Elon Musk is known for his controversial tweets. Now he has answered ‘lol’ to the question about the soaring price of Tesla (TSLA) stock.
Following his May 1 tweet on the price of Tesla Inc (NASDAQ: TSLA) stock being too high the company’s CEO Elon Musk has weighed in again with a comment and an internet meme. Musk responded with ‘lol’ when a tweeter follower asked for his views on the soaring shares of Tesla. The company’s stock has been appreciating since the entrepreneur aired his views about a month ago stating that the price of Tesla shares was too high.
— Elon Musk (@elonmusk) June 11, 2020
The company’s shares rose by 9% closing at $1025 on Wednesday, making it one of the valuable shares of a car maker. Responding to the question of a follower on his view on the rising value of Tesla stock, Musk responded with ‘lol’ and wrote ‘Stonks’. This is a representation of a meme generally seen as ridiculing the stock market. The misspelling of stock was intentional.
Musk also referred to a website which the billionaire acquired last year. The link to stankmemes.com shows a figure before stock prices next to an upward pointing arrow indicative of a bullish position.
Bridging Toyota Gap
With the rise in the value of Tesla stock, the company has reduced the gap between its market cap and that of Toyota Motor Corp (TYO: 7203) by $20 billion even though in practice this is the only observable metric indicating headway towards the major rival. Toyota is still the leading car maker with the highest valuation in terms of market capitalization.
While Tesla has sold 103,000 vehicles in Q1 of 2020, Toyota has sold 2.4 million during the same period. Musk routinely makes news with his tweets. The last time he wrote about Tesla stock, the company’s shares were roughly trading at $780. The assets dropped some points after the tweet before surging by 28%.
Three-Letter Tweet on Tesla Stock from Musk
It is amazing that the three-letter tweet of ‘lol’ which in internet parlance means laugh out loud garnered some 218,000 likes and more than 27,000 re-tweet. Even though following Tweeter news feeds is challenging, it is obvious that the social platform is a market mover.
Aside from Musk, Trevor Milton the chief executive officer of Nikola Corporation (NASDAQ: NKLA) Tesla’s prime competitor that manufactures electric trucks also uses the social media platform to market his company. The rise in the value of Nikola shares last Monday may not be unconnected with Milton’s tweet regarding the company’s light-duty electric truck scheduled for release soon.
It is obvious that Wall Street analysts keep a close eye on top stocks and tweets by influential CEOs are breaking news. There is a correlation between these tweets and market reaction. Tesla stock has performed remarkably gaining a 140% to date and 360% in the past 365 days.