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Elon Musk tweeted a complaint about Tesla’s stock price that erased $ 14 billion (€ 12.7 billion) from the company’s stock value on Friday morning.
The seven-word tweet was the latest controversial outburst by the outspoken CEO, whose outpourings on Twitter have brought him to a critical point before. An incorrect claim in mid-2018 that it was close to the Tesla purchase led to a complaint from the US Department of Justice. USA And to an agreement that implied that Musk agreed not to issue tweets that would move the market in the future without first clarifying them with his legal department of the company.
Tesla did not immediately confirm whether Mr. Musk’s tweet received legal authorization, and did not respond to a question about whether the company currently had a general counsel. Tesla lost three general tips last year, one of them resigned after just two months.
Short verdict
The Tesla chief, who has 33 million followers on Twitter, issued his brief verdict on his company’s shares on Friday morning in California, writing: “Tesla’s stock price is too high.”
Within moments, Tesla’s stock price began to drop, dropping 10 percent over the course of an hour before recovering slightly. The sharp move comes in what has been an enormously volatile period for Tesla’s stock. They collapsed more than 60 percent after the coronavirus impact, but then recovered by 120 percent.
Pre-approved communication
In his 2018 deal with regulators, Musk resigned as Tesla president for three years. It also agreed to obtain prior approval from Tesla’s attorneys for any “company-related communication made in any format, including but not limited to social media posts (eg, Twitter).”
The Twitter-induced drop in share prices marks an ironic turn in Musk’s battle with short sellers, many of whom have used the service to complain that Tesla’s shares are artificially inflated. The day before, short seller David Einhorn took to Twitter to question some of the accounts supporting the company’s latest strong results, sparking a personal dispute with the Tesla boss that has been running for months. – Copyright The Financial Times Limited 2020
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