Elon Musk’s one single tweet costs Tesla $14 billion

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Elon Musk’s one single tweet costs Tesla $14 billion. He is now in a threat of losing his job as the Chief executive officer because of this action he undertook. The company’s board of directors as well as the US securities and Exchange Commission must have taken into account his bizarre tweet that bought Tesla’s market value down in hours. This year, Tesla’s share price has surged, putting the electric car maker’s value near to $100 billion, a mark that would trigger a bonus payment of hundreds of million of dollars to the entrepreneur.

He tweeted that Tesla was “Too high”. It wiped off $3 Billion of Musk’s own stake in the company. On Friday the tweet was posted. Before the tweet the giant’s market valuation was around $141 Billion and it nosedived to literally $127 billion after the post. One user also replied to Musk: ” Are you doing it because you need the cash or is this to protest the world burning down? ” to which he replied :”Don’t need the cash.Devoting myself to Mars and Earth. Possession just weigh you down.”

Elon

This is not the first time. In August 2018,Elon lost his position as a chairman, when he posted about the carmaker ‘going private, funding secured at $420 a share.’ This tweet also resulted in Musk and Tesla reaching a settlement of fraud charges with the SEC,with payment of penalties worth $40 million. This amount was split equally between the company and Musk. “As a result of the settlement, Elon Musk will no longer be chairman of Tesla, Tesla’s board will adopt troppo important reforms, including an obligation to oversee Musk’s communications with investors, and both will pay financial penalties. ” said Steven Peiken, Co-director of SEC’s Enforcement Division,in a statement.

Earlier this week, he tweeted to his 33.4 million followers a strong critical message of the United States stay at home restrictions because of the pandemic.

 

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