Tesla shares fall by 12% after Elon Musk tweets its price is ‘Too high’

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Tesla Inc. is an American electric vehicle company situateded in California. Recently Tesla shares stumbled after its CEO Elon Musk tweeted on Friday that the company’s stock price was “too high”, triggering a free fall in stock prices. According to the report, Tesla shares fell nearly about 12% in the half-hour following his tweet. Its stock was trading at about 760.23 just before Elon Musk tweeted and then fell to a session of 717.64. It is noted that Tesla posted a surprise profit of $1.24 per share for the March quarter versus an expected loss and revenue roughly in-line with estimates. On a call with shareholders, Tesla’s first quarter financial results were concealed by Musk’s profanity-laced commentary on the shelter in place orders that have temporarily closed Tesla’s Fremont. The company did not revise its delivery target about 500,000 vehicles for full year 2020, though many analysts doubt it can meet this goal given widespread demand and manufacturing disruptions to Tesla caused by the pandemic situation corona virus.

Musk’s enormous compensation package i.e. tied to a number of company milestones; including the market cap exceeding about $100 billion over 30 days and six months are not threatened by the latest decline. According to the Bloom berg, Tesla’s market value stood at over $130 billion and its average trailing six-month figure was about $99.1 billion. This first giant pay tranche would net Musk about $730 million if he sold the shares instantly, based on Thursday’s closing price. Musk’s Twitter account and unpredictable behavior have landed him and the company in hot water before. In 2018, he agreed to a settlement with the SEC over a tweet claiming that Tesla had funding secured for a go-private deal that never happened.

Moreover the tweet about Tesla’s stock that Musk also told that he was selling almost all the physical possessions and also to give people back their freedom. He later shared his lyrics to the Star Spangled Banner with his followers. Musk has been outspoken about the corona virus pandemic situation illustrating the investors on the company’s Wednesday earnings call that shelter in place orders areimprisoning people in their homes against all their legal rights.

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