Tesla shares have fallen more than 13% just minutes after Elon Musk, the company’s CEO, posted on Twitter that “the price is too high”. It is reminiscent of the 2018 debacle that ended up costing a lawsuit with the Securities and Exchange Commission (SEC) and a $40 million fine.
Tesla stock price is too high imo
— Elon Musk (@elonmusk) May 1, 2020
The tweet simply says that “Tesla stock price is too high imo” along with others that he claims he will sell almost all of his possessions, including his house. He also insisted on the reopening of the economy and then went on to sing some parts of the U.S. anthem.
Although the stock has fallen by 20% after Musk’s tweets, it is still 65% higher than in May 2019. This is not the first time he has made such public statements. He made a similar statement in December when he topped $420, a reference to the tweet that cost him the lawsuit in 2018.
Musk is on track to receive a significant $730 million bond that is tied to the performance of Tesla’s stock and its stock price.
This may cost him a further problem with the Securities and Exchange Commission, as, as part of the out-of-court settlement, he cannot publish anything about the company’s financial conditions, vehicle production or sales numbers or economic projections without prior approval.