Elon Musk pushes own stock price lower

Elon Musk pushes own stock price lower

Controversy seems to be Elon's middle name. As of Friday, he made the stock price of his own company drop 8%.

After the Q1 financial report became public on Thursday, the stock price for Tesla went up in after-hours trading by 9%. The happiness didn't go on for too long because on Friday, Elon Musk posted a surprising tweet addressing his own company.

“Tesla stock price is too high, IMO” – it made the share price drop 8% below $700 by midday, whipping off more than $14 billion.

It is not the first time when Elon directly influences TSLA share price. In 2013 at a London event, he stated that the company is overvalued "The stock price that we have is more than we have any right to deserve." And he did it once more in December 2019 also via a tweet "Whoa… the stock is so high lol."

Tweets like these got him in trouble before. Since 2018 everything that he posts and can have an impact on the company’s stock price must undergo a team of lawyers before posting.

Not everyone sees this a move made in bad-faith. Professor John Coffee from Columbia University thinks this can be considered a bold move for a CEO. "It is very rare for a CEO to admit that his stock price is too high, and such assessments should be encouraged, not punished."

Today, in pre-market, the stock price went up by more than 1% after the company announced that it applied for a license to generate electricity in the UK, as they already do in Australia.

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Sources: bbc.com, edition.cnn.com, news.sky.com

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