Politics

Tesla stock sinks after Elon Musk calls share price ‘too high’ in tweet

Tesla Inc (NASDAQ:TSLA) stock tumbled Friday afternoon when CEO Elon Musk weighed in on Twitter with an unusual take: The companys share price is too high.

Tesla stock price is too high imo

— Elon Musk (@elonmusk) May 1, 2020

Investors were quick to take his word for it, dropping the stock 9.7% to US$706.30.

This isnt the first time the often erratic Musk has offered seemingly counterintuitive opinions on social media. In an analyst note published Friday, Baird responded to the tweet by tagging the electric car producer with a Neutral rating and a US$700 price target.

READ: Tesla profit beats forecasts but Musk lets rip at 'fascist' coronavirus shutdown

In its report, Baird highlighted four previous times Musk spoke out critically of the firms high market cap. The most damning post came in 2013, when a tweet that read “Stock price that we have is more than we have any right to deserve,” cost shares 30% of their value over the next 30 days.

Musks tweeting was supposed to be reined in, Baird noted, after a 2018 settlement between Tesla and the SEC called for increased oversight of Musks use of the platform. Tesla planned to put in place procedures to monitor the account, as well as Musks blog posts.

Adding to the companys uncertainty is the coronavirus Read More – Source