Tesla (TSLA) Stock Lost 10% after Friday’s Tweets from Elon Musk

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by Muhaimin Olowoporoku · 3 min read
Tesla (TSLA) Stock Lost 10% after Friday’s Tweets from Elon Musk
Photo: Depositphotos

Tesla (TSLA) stock lost over 10% yesterday. The fall is attributed to a series of controversial tweets from Elon Musk. In one of them, he said that TSLA stock price is too high.

Following series of nonsensical tweets from Tesla CEO Elon Musk that made him trend on the popular social media Twitter throughout Friday night, Tesla Inc (NASDAQ: TSLA) stock plunged serially within minutes losing around 12% of its value.

Tesla (TSLA) stock on Friday eventually closed 10.30% lower after losing around $14 billion because of Musk’s tweet where he said that the company’s shares are priced too high.

Tesla (TSLA) Stock Performance

Before that Musk’s tweet on Friday, Tesla had recorded a strong Q1 activity, which helped progress the value of Tesla’s stock. The firm’s stock was trading around $760.23 before the tweet from its CEO. But it plunged to $717.64 and continued to dip. At the market close, Tesla stock price was $701.32. After hours TSLA stock has risen a little bit to $708 (+0.95%).

It is worthy of mention also that Musk, in the past as a result of his tweets, has had issues with the Security and Exchange Commission (SEC). It happened in 2018 when he tweeted saying that he wanted to take Tesla private at $420 per share as he had got funds to do so.

Just last year, the CEO had to reach an agreement with the regulators that gave him the freedom to continue tweeting with certain clauses. As a result of this in certain events, before he can publish a tweet, Musk has to get pre-approval from security lawyers.

However, his Friday tweet looks to violate certain clauses in his last year’s agreement and unclear if he had the approval to post them. SEC refused to comment on whether Musk had gone against any of their settlement agreements in his tweet. Musk, however, in an interview revealed that he got no approval.

Other Claims by Elon Musk

Earlier, Tesla’s board of directors except Musk had to settle a shareholder lawsuit because of the firm’s $2.6 billion acquisition of SolarCity in 2016. However, the CEO has to stand trial against claims that he used his firm to rescue a failing solar installer, as he happened to be a co-founder there.

Apart from Musk’s tweet about Tesla (TSLA) stock, he also posted minutes later that he was putting all most of his properties and physical possession for sale and asked the government to remove lockdown restrictions and return citizens’ freedom.

Since the coronavirus pandemic, the CEO always used Twitter to air his opinion. He told Tesla stakeholders on Wednesday that the lockdown and government orders that citizens should sit at home are an infringement on their human rights and a way of imprisoning them in their homes.

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Muhaimin Olowoporoku
Author: Muhaimin Olowoporoku

Muhaimin is a journalist, a fintech and crypto enthusiast who is passionate about its development in Africa and across the globe. Muhaimin derives pleasure in reporting and analysing happenings in the crypto world and a believer in Blockchain technology.

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