Tesla CEO Elon Musk tweeted Friday that Tesla’s inventory value is “too excessive imo,” and the inventory fell instantly after. Tesla’s inventory is down greater than eight % as of this writing.
Final yr Musk made an settlement with the Securities and Trade Fee to have an organization lawyer pre-approve tweets about Tesla’s funds, gross sales, or deliveries final April. The settlement exists as a result of Musk tweeted he was thinking of taking Tesla personal, “funding secured.” The SEC sued him for securities fraud because of this.
Right here is Musk’s total tweet:
Tesla inventory value is simply too excessive imo
— Elon Musk (@elonmusk) May 1, 2020
On February 19th of final yr, Musk tweeted that Tesla would make “round” 500,000 Tesla Mannequin 3s in 2019, which was not according to the corporate’s steering at the moment. The SEC then requested Musk if he was complying with the order to have his tweets reviewed. It turned out that he wasn’t, which led to a weeks-long authorized battle for a stricter settlement agreed upon in April 2019. Tesla and Musk are nonetheless defending themselves from shareholder lawsuits stemming from the go-private tweets.
Musk adopted at the moment’s tweet concerning the inventory value being too excessive by tweeting the lyrics to “The Star-Spangled Banner,” America’s nationwide anthem. This additionally has echoes of his response to the SEC: he’s referred to as the company’s response to his February 19th tweets “an unconstitutional energy seize.”