Social media can be a very powerful, yet equally dangerous tool to use for company executives. Elon Musk will know that all too well, yet he still managed to trigger a minor Tesla stock crash through Twitter.
Any comment made on social media can certainly trigger an uproar.
Elon Musk Triggers Small Crash
This is especially true when someone working for – or owning – a major company decides to spread a message.
Tesla founder Elon Musk tried to do something funny, yet it backfired completely.
He mentioned on Twitter how the Tesla stock price was simply too high.
Some holders took the advice to heart and promptly wiped $14 billion off the company’s value.
Moreover, it also reduced Musk’s own stake in Tesla by $3 billion, give or take.
It still remains unclear if he was merely jesting or genuinely wanted to see if he could influence the Tesla stock price.
Interestingly, a higher TSLA stock price will be beneficial to Elon Musk himself.
If the company reaches a $100 billion valuation, he will receive a bonus payment of hundreds of millions.
At the same time, Musk doesn’t seem to care much for the money, which could explain this particular Tweet.
More often than not, this stock tends to bounce back quickly, thus no real long-term damage may be done.