Elon Musk, the billionaire entrepreneur and CEO of Tesla, once caused a dramatic plummet in Tesla’s stock value with just a seven-word tweet. In 2020, Musk tweeted to his then 33 million Twitter followers, “In my opinion, Tesla’s stock price is too high.” This simple statement triggered a sharp decline in Tesla’s stock, reportedly wiping off $14 billion in market value.
Tesla shares dropped as much as 12% before closing down by 10.3% following the tweet. CNBC reported the loss in Tesla’s market value, while the BBC highlighted that Musk’s personal Tesla stake saw a $3 billion reduction.
This isn’t the first time Musk’s tweets have stirred controversy. Back in 2018, Musk inaccurately claimed he was close to completing a Tesla acquisition, prompting an investigation by the US Department of Justice. As part of a settlement, Musk agreed to have his market-moving statements pre-approved by Tesla’s legal team before being shared publicly, especially on social media platforms.
Despite the agreement, Musk’s controversial tweet about Tesla’s stock price was posted without prior review, leading to frustration among investors. Daniel Ives, an analyst at Wedbush Securities, told Reuters that Musk’s tweet was “sarcastic” and “Elon being Elon,” but acknowledged the frustration it caused for Wall Street and Tesla shareholders.
Musk’s Twitter activity has often landed him in hot water, and his latest legal issue stems from a different controversy. The SpaceX founder has been named in a criminal lawsuit filed by Algerian Olympic boxer Imane Khelif, alongside Harry Potter author J.K. Rowling. The lawsuit accuses Musk and Rowling of engaging in severe online harassment related to Khelif’s involvement in a gender eligibility dispute with boxer Angela Carini.
This latest incident adds to Musk’s long history of controversial social media posts, which continue to impact Tesla’s stock and his own personal wealth. Investors remain cautious, as Musk’s unpredictable nature on social media often leads to financial volatility.
