Electric vehicle maker Tesla plunged to Wall Street Friday after a tweet from boss Elon Musk said the share price was “too high,” AFP said.
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“The Tesla share price is too high,” wrote Musk on his Twitter account, without elaborating further.
The title ended the session on a plunge of 10.3%, after having tumbled more than 13% a little earlier. It remains up over 65% since the start of the year.
The market capitalization of Tesla, a group founded in 2003, is almost double that of General Motors, Ford and Fiat Chrysler combined even though these manufacturers sell millions of cars per year.
Tesla hopes to sell half a million cars this year, which would be an all-time high.
This tweet is likely to draw the attention of the authority of the financial markets, the SEC, sourceuse on the communication of information having consequences on the evolution of the Stock Exchange.
Especially since it recalls another 2018 message from M. Musk on a possible Tesla withdrawal from the stock market.
The latest tweet sparked a Homeric showdown between the CEO and the SEC, which resulted in an agreement that Elon Musk was stripped of his cap as chairman of Tesla’s board of directors.
In 2019, after further hostilities, the agreement was amended to list topics on which Mr. Musk could not tweet without the prior green light from Tesla’s chief legal officer.
The list included information on the company’s financial health, potential mergers and acquisitions, production and sales figures for cars, new models of cars, purchase of Tesla securities and financial products.
A series of disconnected tweets
Elon Musk, boss of the space company SpaceX, also launched Friday in a series of tweets, disconnected from each other.
“I’m going to sell all of my physical goods. Will not own (more) house ”, can we read in one of the messages.
In two others, the whimsical leader reiterates his sharp criticisms against the confinement intended to limit the spread of the Covid-19.
“Now give back to the people their FREEDOM”, he gets carried away in a tweet; “Anger, anger at the death of the light of conscience,” proclaims another of his messages.
Musk said on Wednesday that the containment was “fascist”, saying that this measure, adopted by countries around the world to fight the health crisis, was suffocating businesses.
The leader had closed the Tesla California plant backwards on March 19 and wanted to reopen it on May 4 but the extension of confinement and social distancing thwarts this project.
All this did not prevent Tesla from generating a net profit of $ 16 million in the first quarter, a first for the first three months of the year since the creation of the group 17 years ago.
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