Tesla's market value drops by $14 billion after Elon Musk tweets 'stock price too high'; CEO's stake down by $3 billion in value

In his Twitter tirade, Musk even claimed that he is selling almost all his physical possessions and that he will 'own no house'

FP Trending May 02, 2020 16:20:52 IST
Tesla's market value drops by $14 billion after Elon Musk tweets 'stock price too high'; CEO's stake down by $3 billion in value

Tesla founder and CEO Elon Musk recently tweeted that the company’s share prices were too high. The tweet managed to wipe USD 14 billion off the carmaker's value and set back Musk's own stake in Tesla by USD 3 billion after investors bailed out of the company, reported Reuters.

In a bizarre Twitter rant on Friday, Musk wrote, “Tesla stock price is too high imo.”

In his Twitter tirade, Musk even claimed that he is selling almost all his physical possessions and that he will “own no house.”

According to a BBC report, the Wall Street Journal asked the billionaire if he was joking about the share price tweet and whether it had been vetted. Musk replied with a “no”.

Tesla’s shares have been on an upward trajectory since March. The New York Times said that this is because people believe Musk’s company is set to lead the transition to electric cars.

Earlier, this week Musk had criticized the restrictions in the US due to the coronavirus pandemic.  “Free America Now,” he tweeted.

He then posted later, “Yes, reopen with care and appropriate protection, but don’t put everyone under de facto house arrest.”

An opinion column in CNN said that Musk must has taken to Twitter to perhaps help out Tesla’s business. Like other companies, Tesla too has suffered due to the Covid-19 shutdown in some states.  Tesla factories in New York and California are shut currently.

Musk’s tweets have landed his company in trouble previously as well. In 2018, he had tweeted about Tesla “going private” after funding had been secured. The tweet had cost him his role as the chairman of the company.

Musk had settled by agreeing to pay $20 million and have a Tesla lawyer pre-screen his tweets with important information about the company.

With inputs from Reuters

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