Electric car maker Tesla’s stock took a sharp nosedive by over 8% after CEO Elon Musk seemingly tweeted that he thought the company’s valuation is too high. In what’s likely a hack of Musk’s Twitter account, a series of tweets ensued about Musk’s girlfriend, the covid-19 lockdowns and that he’s selling all his possessions.
The tweets started with one which said, “Tesla stock price is too high imo (in my opinion)," followed by another saying, “Now give people back their FREEDOM," and continued for over an hour. Tesla hasn’t confirmed whether the series was indeed a hack, but the company’s stock seems to be stabilising again after the initial drop.
Tesla’s stock prices opened at $755 and at the time of writing it stood at $700.32 on the NASDAQ listings. The company had recently announced a profit in the first quarter of the year despite the economic slowdown worldwide due to covid-19, which surprised many analysts. However, Musk has openly condemned the coronavirus lockdowns imposed by the US government and called them excessive.
Another reason why this is almost certainly a hack is that the Tesla CEO had made a deal with the United States’ (US) Securities and Exchange Commission (SEC) last year where he agreed that his public statements about the company’s finances would be vetted by Tesla’s legal counsels. The deal was a result of a dispute with the SEC about Musk’s use of Twitter. No legal counsel for a publicly listed company would allow its CEO to make the tweets that have come from Musk’s account in the last hour.