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Elon Musk tweet wipes $14bn off Tesla's value:
The tweet also knocked $3bn off Mr Musk's own stake in Tesla as investors promptly bailed out of the company.
"Tesla stock price is too high imo," he said, one of several tweets that included a vow to sell his possessions.
In other tweets, he said his girlfriend was mad at him, while another simply read: "Rage, rage against the dying of the light of consciousness."
In 2018, a tweet about Tesla's future on the New York stock market led to regulators fining him $20m and agreeing to have all further posts on the platform pre-screened by lawyers.
Previously:
(2019-04-27) Elon Musk Reaches Settlement in SEC Tweet Battle
(2018-10-06) Elon Musk Isn't on His Twitter Leash Yet, So He's Taunting the SEC
(2018-09-30) SEC Settlement: Elon Musk Resigns as Chairman of Tesla, Stays as CEO, $40 Million in Fines Paid
(2018-09-28) Elon Musk Accused by SEC of Misleading Investors in August Tweet [Updated]
(Score: 5, Insightful) by edIII on Saturday May 02 2020, @06:57AM (11 children)
If your wealth can be ruined by a tweet, then it wasn't real. That's why stock market wealth is complete and utter fucking crap, and why Trump is probably worth a couple hundred million at best. Elizabeth Holmes went from being worth $4 billion personally to peanuts. All based on speculation, and much of that based on bullshit. It's as shallow as Instagram wealth, and based on about as much.
Imagine explaining that to Ghengis Khan. That he came out of the tent one day, raped a bunch of women, but fucked up and said the wrong thing while drunk. Then he lost everything because of it. There would either be laughter, or he would kill the messenger.
Reality is that Tesla and Musk lost no real wealth whatsoever because of the tweet. Same real property exists, same amount of money in coffers, same assets. It's amazing that perception propped up by bullshit can create such fabulous wealth from literally nothing, and then it can disappear just as fast.
Technically, lunchtime is at any moment. It's just a wave function.
(Score: 3, Interesting) by FatPhil on Saturday May 02 2020, @09:04AM (10 children)
Great minds discuss ideas; average minds discuss events; small minds discuss people; the smallest discuss themselves
(Score: 1) by khallow on Saturday May 02 2020, @10:22AM (9 children)
So what? Companies do that all the time when they "provide guidance". I think the bigger issues are 1) is it true? and 2) does he profit by that manipulation.
But then, I'd rather the SEC be burned to the ground than impair the speech of corporate officials on twitter. YMMV.
So why shouldn't the CEO say something, if say, they think the stock is way overpriced? Even in the most aggressive interpretations of fiduciary responsibility, it's not the job of the CEO to support short term stock prices.
(Score: 2) by FatPhil on Saturday May 02 2020, @10:59AM (1 child)
Given that a business corporation is organized and carried on primarily for the profit of the stockholders, causing the price to drop harms the stockholders' ability to make profit from the stock, it seems a clear-cut violation of the law. So yes, it is indeed the CEO's job to at least not unnecessarily endanger short term stock prices.
However, my mileage would not vary greatly from yours, I think such clauses obligating the above should be struck from the laws, such that there was no law to violate. But they are there, so they should be disinterestedly upheld. Douchebag CEO? Company won't live as long. That perfectly fits in with idealised Capitalism.
Great minds discuss ideas; average minds discuss events; small minds discuss people; the smallest discuss themselves
(Score: 2, Touché) by khallow on Saturday May 02 2020, @11:15AM
Well, it's a lower price now.
(Score: 0) by Anonymous Coward on Saturday May 02 2020, @11:08AM (6 children)
They raised $2 billion last quarter and forgot to tell investors that it was overpriced before taking their money.
(Score: 1) by khallow on Saturday May 02 2020, @11:18AM (5 children)
(Score: 1) by fustakrakich on Saturday May 02 2020, @03:12PM (4 children)
Things have changed.
No they haven't. They just repeat.
La politica e i criminali sono la stessa cosa..
(Score: 1) by khallow on Saturday May 02 2020, @03:44PM (3 children)
(Score: 1) by fustakrakich on Saturday May 02 2020, @04:08PM (2 children)
That almost made sense
La politica e i criminali sono la stessa cosa..
(Score: 1) by khallow on Saturday May 02 2020, @04:12PM (1 child)
(Score: 1) by fustakrakich on Saturday May 02 2020, @04:24PM
Yeah, so? Who said anything about three month business cycles? For them, it's a speed bump, and the government is bailing them out. Like I said, a repeat
La politica e i criminali sono la stessa cosa..