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Elon Musk, the CEO of Tesla, had previously received warnings about his statements that could change the market.
A startling $14 billion was deducted off Tesla’s market worth as a result of Elon Musk’s audacious seven-word criticism of the company’s stock price.
Since becoming Tesla’s biggest shareholder in February 2004 and being named CEO in October 2008, Musk has guided the business to extraordinary heights.
He has had an indisputable impact on Tesla’s achievements, from launching the Roadster into space to introducing the eagerly anticipated Cybertruck.
Along the journey, he also became the richest person in the world.
Musk’s ascent hasn’t, however, been free of controversy.
Musk lied when he said he was nearing a Tesla buyout in 2018, which prompted the US Department of Justice to launch an inquiry.
The outcome? In exchange for a settlement, Musk had to get Tesla’s legal staff to approve all of his market-moving remarks before he could make them public.
This holds true for social media as well as any other platform.
Two years later, Musk found himself in hot water once more, this time for tweeting about the price of Tesla’s stock.
“Tesla stock price too high imo” was a direct tweet sent by Musk to his 33 million followers on Twitter at the time (now X).
The value of Tesla’s stock fell precipitously as a result.
According to a CNBC article at the time, Tesla’s stock dropped as high as 12% before finishing at 10.3%.
The BBC went on to say that the company’s value was destroyed by an astounding $14 billion.
To exacerbate the situation, Musk’s tweet also reduced his personal ownership in Tesla by $3 billion.
Despite his deal with the SEC, Musk later acknowledged to The Wall Street Journal that he did not have the company’s legal department examine the tweet before posting it.
Wedbush Securities analyst Daniel Ives told Reuters following the tweet: “We see these remarks from Musk as tongue in cheek, and it’s just Elon being Elon.
“It’s certainly a headache for investors for him to venture into this area as his tweeting remains a hot button issue, and [Wall] Street clearly is frustrated.”
More recently, Olympic fighter Imane Khelif launched a criminal case against Musk, putting him in legal hot water once more.
After her opponent, Angela Carini, left the fight after just 46 seconds due to a gender eligibility issue, the 25-year-old Algerian fighter gained notoriety.
According to sources, Khelif failed the International Boxing Association’s gender eligibility test even though she was born a woman.
As a result of their online comments, well-known individuals like Musk and novelist J.K. Rowling are included in the complaint, where they are charged with “acts of aggravated cyber harassment.”
