Even by the standards of Elon Musk, who said in 2019 that his Twitter account had become silly, last weekend’s poll on whether he should sell 10% of his Tesla Inc. shares was far-fetched.
After a clear majority (58%) of 3.5 million Twitter users voted in favor, Tesla shares fell the most in eight months in New York trading on Monday, falling as much as 7.3%. The stake would be valued at about $ 21 billion based on the 170.5 million Tesla shares it owns.
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Whether he does or not, the move to get attention was just the latest in a long history of Musk using Twitter and his legions of fans on the platform to spark interest in Tesla and his other companies, sometimes pushing the envelope. with tweets. They stray from the irony to the deliberately outrageous.
It also wasn’t the first time his musings on Twitter have moved Tesla’s stock, with the infamous “secured funding” tweet drawing ire from authorities.
That resulted in the 50-year-old agreeing in 2018 to obtain approval from a Tesla attorney before communicating material information to investors as part of a deal with US securities regulators. It was unclear whether that was. Official previewed Musk’s Twitter poll.
Here are six other times Musk has shaken the market with his tweets:
1. Musk did so last week, questioning Hertz Global Holdings Inc.’s deal to buy 100,000 Teslas for its rental car fleet and downplaying the $ 4.2 billion deal. Tesla shares fell 3% the next day.
It wasn’t the first time Musk had questioned the market’s reaction. On October 25, he tweeted that the change in Tesla’s valuation (shares rose 12%) was “strange” because he said the company is facing problems with production, not demand.
2. In May of last year, Musk unleashed a storm of tweets in which he said that he was selling almost all of his possessions and that he would not own a home, and expressed the unusual opinion of a CEO that his company’s stock ( then trading at a split) adjusted $ 156) was too high. The shares quickly fell 10%. However, the decline was short-lived and all losses were recovered over the next three days.
3. In February 2019, Musk corrected a prediction of how many cars Tesla would make that year, just hours after tweeting that annual production would hit 500,000 vehicles. The electric car pioneer said he intended to tweet that Tesla expects to make cars at an annual rate of around 500,000 by the end of 2019.
In response, the stock fell 3.7%.
4. Arguably Musk’s most infamous tweet fell in August 2018, sparking weeks of feverish speculation about his intention to take Tesla privately. The shares rose 11%, before erasing those gains in the following days as doubts grew about their ability to reach the deal.
In the end, it all seemed to be a pretty dull joke: April 20, or 4/20 ($ 420, get it), is a popular day for cannibas fans to celebrate marijuana culture.
Musk ended up paying a $ 20 million fine to settle the fraud charges and had to resign as president for three years. Tesla also paid a $ 20 million fine. Musk had no regrets, later tweeting that the fine “was worth it” and continuing to take photos at the US Securities and Exchange Commission.
Turns out it would have been the robbery of his life. The “offering” valued Tesla at $ 82 billion, a fraction of the $ 1.17 trillion market capitalization it now has.
5. Amid frenzied speculation about the private offering, Musk tweeted that he had removed the heavy weapons from Goldman Sachs Group Inc. and renowned Silicon Valley acquisition firm Silver Lake Management LLC as advisers.
Still, that did little to silence skeptics, and stocks continued their downward trajectory, falling 15% in four days.
6. A failed April Fools joke, Musk’s tweet that Tesla has gone “completely and totally bankrupt” came after a series of bad news for the automaker, including production shortfalls, scrutiny regulatory information on its Autopilot driver assistance system and a credit. the rating is further downgraded to junk by Moody’s Investors Service.
All of that combined to send the stock down as much as 8.1%.
And of course there is also Musk’s influence on the crypto markets, causing the price of Bitcoin, Dogecoin, and Shiba Inu to rise and fall with his musings and memes.
© 2021 Bloomberg