Tesla stocks take a sharp dive after controversial tweets from Elon Musk

Monday, 04 May, 2020

While the latest version of the settlement agreement doesn't specifically mention comments about Tesla's share price, it says he needs to vet communications about "events regarding the company's securities".

At least that's what Elon Musk said on Twitter earlier today, "Tesla stock price is too high imo". Now, he gladly tweets that everyone appears to be on the same page. In August 2018, he tweeted that he had secured funding to possibly take Tesla private at a big premium, which led a fraud case by the U.S. Securities and Exchange Commission. "Give people back their goddamn freedom", he said. But Musk is due to stand trial as a last defendant against claims he used Tesla to bail out a failing solar installer, which he co-founded and ran with his first cousins, Lyndon Rive and Peter Rive. Tesla's stock price fell by over ten percent, which shaved about 102 billion of market value.

Tesla's market valuation was worth around $141 billion before the first tweet and it nosedived to almost $127 billion.

Elon Musk announced in a tweet on Friday that he would sell "almost all" his physical belongings.

A snapshot of Elon Musk's tweets.

In 2018, he wrote that he had contact with a group of investors that would buy the Tesla for a price that was far above the then share price.

"It will cause great harm, not just to Tesla, but to any companies". The stock is still up about 70 per cent for the year, an advance that's put him in position to meet the final performance threshold he needs to receive stock options that would yield a windfall of about US$730 million.

That amounted to a loss of approximately $13 billion in market value. The company's worth plunged $14 billion on his Friday tweets. It is near that level now.

Elon Musk, the billionaire and prolific Twitter user, is rethinking his attachment to the material world - and said in a tweet on Friday that a first step would be "selling nearly all physical possessions". She is reportedly pregnant with his child. Shares are up roughly 87% for the year through Thursday's close.

-Allison Prang contributed to this article.