Tuesday, October 20, 2020

Elon Musk’s provocative tweet put Tesla in problem

Elon Musk’sTweet
Tesla CEO Elon Musk speaks during the unveiling of the new Tesla Model Y in Hawthorne, California on March 14, 2019. (Photo by Frederic J. BROWN / AFP)FREDERIC J. BROWN/AFP/Getty Images

-Keshav Rathi

Elon Musk’s Tweet:

Elon Musk again took the twitter world by storm. With another provocative tweet of Tesla CEO Elon Musk, Tesla is again in the headlines.  A single tweet by Elon Musk stating the Tesla stock to be extremely expensive has brought Tesla’s market value down by $14 billion in a few hours. To sum up this has also knocked $3 billion off Musk’s own stake in the company.

What did Elon Musk say?

“Tesla stock price is too high imo (in my opinion)”, Musk said on Twitter. Likewise the shares of Tesla dropped as much as 12% on Friday before closing at 10.3% low. Tesla stock was trading at 760.67 just before Musk tweeted and after that fell to 717.29, before falling even more. Meanwhile, Musk spoke about Tesla stocks in one of his several tweets, including ones where he quoted part of U.S. national anthem and that he would sell almost all his physical possessions.

Elon Musk’s history of misleading tweets

Elon Musk has a history of causing disruption in the market by his unusual and “not-so-funny” tweets. His earlier ill-famed tweet in August 2018 when he said about Tesla “going private, funding secured” at $420 a share” cost him his role as chairman of Tesla. It resulted in Musk and Tesla reaching a settlement of fraud charges with the SEC, including $420 million in penalties, split equally between the company and Musk.

On Friday, after Musk’s controversial tweet, Tesla’s market valuation collapsed from $141 billion to $127 billion. One user replied to Musk: “Are you doing it because you need cash or is this to protest the world burning down?”, to which Musk replied, “Don’t need the cash. Devoting myself to Mars and Earth. Possession just weigh you down”.

Which law Elon Musk needs to follow?

In conclusion, according to law, Musk is supposed to seek pre-approval if his tweets include anything regarding the company’s securities, including his acquisition or disposition of shares, non-public legal or regulatory findings, or decisions. In other words, Tesla can never work without creating controversies.

About the Author

Keshav is a photographer writer who likes to see the stories behind each of his captured photographs. He loves to read and ponder about things about this Universe. On his journey to discover the secrets of the universe, he tries to squeeze out theories with his daily life experiences. Writing is something which he started as a mere interest and is now his real drive in life. To see beyond walls, to experience the never experienced things, and to discover few secrets of the universe is what this writer craves for.

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