Elon Musk costs Tesla 7% in share price with single Tweet
Tesla's share price has just fallen by 7%, partially wiping out its gain of 17% from Monday (October 1, 2017). This drop appears to be linked to a Tweet sent by the company's CEO, Elon Musk. This post seems intended to mock the US Security and Exchange Commission (SEC) with the name “shortseller enrichment commision”.
The full Tweet read: "Just want to that the Shortseller Enrichment Commission is doing incredible work. And the name change is so on point!" The 'joke' was originally tweeted to the wrong SEC however - the American football college organisation, the South Eastern Conference. The CEO may in fact have wanted to target the SEC in response to its recent decision to fine Tesla US$20 million dollars and force Musk himself to step down from the car-maker's board.
Tesla were reportedly fined as it did nothing to curb earlier ill-advised Tweets from the CEO about plans to take the company private. Therefore, it was not a good look that the company could not reign Musk in and prevent him posting more content that may damage its image or interests. It is ironic that the latest example of it has benefited more "shortsellers".