Is Elon Musk victim of a lockdown-breakdown?
Published by Terence Mahier | Source

Last Friday, Tesla's CEO Elon Musk went on a twitter rant starting with a claim that "Tesla stock price is too high imo" 🤔

Musk has been vocal lately about his frustration of the Economic shutdown. Critics voiced their concerns that Elon Musk was prioritizing his business over the health of its workers. He answered "I am selling almost all physical possessions. Will own no house.", adding then "Now give people back their FREEDOM" 🤯

Shares of Tesla immediately fell by 10% on worries that the CEO was kind of losing it, not mentioning his past issues with the SEC for alleged market manipulation 👽

Will investors lose faith?

Extra Insights

The company just days before reported a strong quarter, sending shares higher, up +67% since January 📈

Musk has had problems with the SEC for tweeting about the company’s stock in the past. Musk has since agreed to submit his public statements about Tesla’s finances and other topics to vetting by its legal counsel. It’s unclear if Musk had that approval for his tweets Friday 🧐

Overall, the lockdowns are not good news for the Automotive industry. AutoData reported that U.S. auto sales came in at an annual rate of 8.6 million vehicles for April, compared to 16.52 million a year ago. That represents a 48% plunge 💥

What Happened on the market eventually?

TSLA jumped 8.54% yesterday after Morgan Stanley raised its price target from $480 to $660. The current price being $761, the announcement should not have caused such a spike. But the normal rules don't apply to Tesla 👽

- Newspill Team 💊
05-May 04:17 (Eastern Time)

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