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Social media is so powerful that one must be extra cautious while uttering a word. Especially, if one is a celebrity, he or she must be very careful as the reputation of he or she is not just at stake but it can cause huge damage to company’s reputation as well and its share price in stock market. Here is one such classic example where single tweet of Elon Musk, the co-founder of Tesla, has resulted in crash of stock price of Tesla resulting in loss of company’s value by huge margin.
Going into details, Elon Musk had recently tweeted, “Tesla stock price is too high imo.” Little did Musk predicted that these seven words would cause heavy damage to his company’s market value. The tweet resulted in USD 14 billion (i.e 1,05,980 crores) loss. The tweet ended up by wiping USD 11 billion of Tesla’s value and knocked another USD 3 billion off Elon Musk’s own stake in Tesla.
Elon Musk, who has a net worth of USD 3890 crores, has 33.4 million followers on Twitter. His every Tweet will have huge impact. After tweeting that Tesla’s stock price is too high, Elon tweeted that he would sell all his physical possessions and announced that he would own no house.
Musk’s tongue-in-cheek comment has given shock to investors as Tesla’s share price stumbled. However, this is not first time for Musk to get into trouble due to his tweets. In 2018, he had tweeted that he may have secured funding such that it’s possibly remove Tesla from the stock market and take it private. That had then resulted in the down of share price of Tesla.The Securities and Exchange Commission declard it as a market-moving comment and fined him. The SEC cautioned Tesla not to repeat such in future. But that’s not over. A Federal judge last month said Musk and Tesla must face a lawsuit by shareholders over his tweet on going-private including a claim that Mr Musk intended to “defraud” the shareholders.
In another instance last year, Musk found himself in court after tweeting that a British diver was a “pedo guy”.
Tags Tesla
