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Tesla's Stock Drops Billions After Elon Musk's Tweetstorm Friday (bbc.co.uk) 206

Friday Techcrunch reported Elon Musk tweeted to his 33.4 million followers that Tesla's stock price "was 'too high' in his opinion, immediately sending shares into a free fall and in possible violation of an agreement reached with the U.S. Securities and Exchange Commission last year."

Tesla's shares plummetted nearly 12% over the next 30 minutes, which reduced Tesla's valuation by over $14 billion, the BBC reports, while reducing Musk's own stake by $3 billion, according to an article shared by long-time Slashdot reader UnresolvedExternal. "In other tweets, he said his girlfriend was mad at him, while another simply read: 'Rage, rage against the dying of the light of consciousness.'"

Even at the end of the day Tesla's shares were still down 7.17%. But Techcrunch called Musk's stock-price tweet "just one of many sent out in rapid fire that covered everything from demands to 'give people back their freedom' and lines from the U.S. National Anthem to quotes from poet Dylan Thomas and a claim that he will sell all of his possessions."

Rolling Stone has more on what they're calling Musk's "quarantine tantrum," noting that in a Wednesday earnings call, Musk had also complained about restrictions on non-essential businesses and ordinary people. "To say that they cannot leave their house, and they will be arrested if they do, this is fascist... give people back their goddamn freedom."

The magazine notes this drew a scathing rebuttal on nationwide TV from The Daily Show's Trevor Noah: "Finally, someone has decided to call out this fascist American government that's asking people to please stay in their houses to try and save their own lives," Noah said sarcastically. "I mean, you're not even allowed to go to the grocery store anymore! Well, actually, you can go to the grocery store, but you can't even go for a walk! I mean, you can do that too, but what about the beach? You're not allowed to go to the beach, except for all the states where you're allowed to go to the beach. But you definitely can't go to H&M, and that is the definition of fascism."
CNN Business writes that Musk, "heralded for years as a pioneer in space travel and transportation, has recently veered into disseminating coronavirus misinformation," adding that Musk's comments "also come in stark contrast to those made by some of his peers in Silicon Valley, who have urged caution on reopening." "I worry that reopening certain places too quickly, before infection rates have been reduced to very minimal levels, will almost guarantee future outbreaks and worsen longer-term health and economic outcomes," Facebook CEO Mark Zuckerberg said during an earnings call Wednesday.
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Tesla's Stock Drops Billions After Elon Musk's Tweetstorm Friday

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  • SEC? (Score:5, Insightful)

    by lessSockMorePuppet ( 6778792 ) on Saturday May 02, 2020 @09:37AM (#60014286) Homepage

    Didn't they tell shit-for-brains to shut up and not mention stocks? Stop pissing off the SEC?

    They didn't need to spend that much on marketing.

  • by Ecuador ( 740021 ) on Saturday May 02, 2020 @09:41AM (#60014298) Homepage

    It would be news in another era, but after having the US president post tweets that most 8-year olds would be ashamed of night and day for years now, it is rather business as usual...
    Hope Musk isn't completely losing it, his companies do some great work.

  • He's not wrong (Score:5, Insightful)

    by Hentes ( 2461350 ) on Saturday May 02, 2020 @09:47AM (#60014306)

    Both car manufacturers and real estate are going to lose a lot of value by the time the pandemic is over, selling his assets is a rational financial move. Tweeting about it, especially in such a rambling way isn't going to help though, that's not what they mean when they say you should sell high.

    • During a recession you only sell assets when you either need cash, or they are extremely overvalued and you are trying to minimize loss before reality sets in.
      • by radl33t ( 900691 )
        Or to take profits on a 30% run in the market.
      • LOL wait, so in the year 2020 you're going to trot out a, "psychology doesn't matter, market participants are rational" theory?

        Don't forget to ask if anybody has studied this before you settle on it as your PhD thesis.

    • ...selling his assets is a rational financial move.

      I sense confusion; he's selling assets, not stocks (if he was selling stocks, he'd hardly proclaim the share price to be too high).

    • He's not selling his equity assets - just real world physical assets.

      Most people don't understand that he may be rich, but he operates on the verge of being bust almost all of the time. The fact that Musk doesn't take a salary is actually a big problem. The only way he can take advantage of his stock wealth other than selling it and losing control of companies in the process is to take loans out against it. But, since it is stock and its value could plummet at any moment, they only loan him pennies on the d

  • by t4eXanadu ( 143668 ) on Saturday May 02, 2020 @09:54AM (#60014326)

    Elon Musk is clearly taking too much Acid. Slow down, idiot, slow down.

  • I don't do much in the stock market but I definitely took advantage of the drop in price. And since it contributed in triggering another drop in stock prices overall, I didn't let complaining about the impact on the market distract me from getting back in the market.

    One man's broken egg is another man's omelet. Which is to say, I didn't start the fire but don't get mad at me if I roast some marshmallows.

    • You start talking about eggs and then you switch to marshmallows. I don't know what kind of recipe you're making but I want no part of it.

      • It seems obvious, but he's making a marshmallow crepe cake and he's browning the marshmallows under the lizard because it was already hot.

        Do you even cook, Bro?

  • by esperto ( 3521901 ) on Saturday May 02, 2020 @10:00AM (#60014350)

    Musk seems to be in a weird place right now, besides the twit about tesla's stock price he's been twitting a lot about the COVID situation and demanding the quarantine to be lifted up.

    I guess that this is his business side talking as his companies probably don't have the money to stay afloat even with a few weeks of down time and months would mean death, but it really surprised me to see this kind of behavior from some one that is extremely into science and basically has his motivation for what he does in life based on climate change (tesla electric cars, reusable rockets/going to mars, solar roofs). He really is on the wrong side of history in this matter.

    Quite sad.

    • by Kjella ( 173770 ) on Saturday May 02, 2020 @10:41AM (#60014438) Homepage

      I think it's his savior complex showing. He's had a tendency to want to jump in and fix things that he's got no clue about like a cave rescue submarine for those kids in Thailand. With COVID-19 he's basically been asked to sit on the sidelines and wait it out and it's killing him. So since he can't fix it he wants to dismiss it so he can get back to being center stage and saving the world.

      • And yet, he knows he's not a doctor.

    • Re: (Score:2, Insightful)

      by Aighearach ( 97333 )

      He's an immigrant, and having him take a public stance against our quarantine during a global pandemic is disgusting, and misguided. This is absolutely not how you're expected to treat the people when you move to a new place. Not your fight, Asshole, do what you're told during a crisis.

      He should be advised that his rights may be lawfully suspended during a public health crisis, particularly a pandemic, up to and including his right to life. He's a fucking idiot who didn't attend any Western Civilization c

  • by Futurepower(R) ( 558542 ) on Saturday May 02, 2020 @10:03AM (#60014366) Homepage
    It seems possible that Musk wants his stock to go down.

    Maybe he wants to buy more of his own stock?
    • by Fly Swatter ( 30498 ) on Saturday May 02, 2020 @10:08AM (#60014374) Homepage
      Stock manipulation is a no-no. He was previously warned about it. The SEC can't be happy right now.
      • by AmiMoJo ( 196126 )

        Not just warned about it, fined $40M.

        Tesla were supposed to be moderating his tweets so they are probably in trouble again too.

        • Well, a public corporation is required and presumed to share the public interest, so the company lawyers are going to have a really hard time even taking his side on this.

          I don't see how he leads SpaceX, either. In fact, I'm not sure how any of his companies can continue to service government contracts without removing him.

    • He wants to put pressure on the government to re-open the country. He has been upset that his Tesla plants have been closed the whole time, and for a while in California even had them violate the quarantine order.
    • Options Spread (Score:5, Interesting)

      by ghoul ( 157158 ) on Saturday May 02, 2020 @10:42AM (#60014446)

      Tesla has bought options at 500 and sold options at 700. They sold this credit spread when they sold bonds last year to prevent dilution. So tesla needs the price of shares to stay between 500 and 700 till 2021 for maximum profit.

      Watch out anytime it crosses 700. Tesa will either sell shares to dilute or Musk will do something crazy to get the stock down to 700.

    • by vix86 ( 592763 )

      I'm not sure this makes that much sense.

      He is set to receive a CEO Performance Award [sec.gov] here very soon if he hasn't already. The only metric he was waiting on I suspect was having the 180-day moving average [marketwatch.com] go above $432. This will trigger a tranche payout of 1.7M stock options at a $350 buy point. Tesla was also nearing the $150B market cap mark as well and after getting the 180-day and 30-day moving average over that point he'd receive another 1.7M stock options at $350 (getting this pay out was going to be

  • It is SO predicatable

    Step 1) Sky rocket up to prices that based on unreasonable expectations because everyone realizes how smart the engineers are.

    Step 2) Fall like a Stone because everyone realizes how bat shit crazy the management is!

    Step 3) Buy calls after Step 2, Buy Puts after Step 1, make a ton of cash.

  • What he did is not good. One lesson that should have been hammered into his brain would have been "no tweet about Tesla when markets were open. No time to send corrective messages and manage the damage". It is bad he went on that tweet storm, seemed hardly coherent, but I chalked it up to my lack of twitter fu. Turns out it was incoherent tweeterrhea really.

    But, more importantly, the past tweeterrheas happened at times of severe stress to cash flow to the company. Tesla got 2 billion raise. But still it m

  • The Tantrum (Score:5, Insightful)

    by AlanObject ( 3603453 ) on Saturday May 02, 2020 @10:30AM (#60014418)

    As something of a Musk fanboi I was pretty perturbed by his "taking away people's freedoms" tweet.

    They way I read it is this. His factories are shut down. He wants them open.

    He thinks, as many do, that if you are super smart and awesome and shit you can avoid COVID-19 infections even if you are working. Stay at home is for people that aren't super smart and awesome and shit. But he and his people should be allowed to open because they are all super smart and awesome and shit so they should be allowed to run his factories in his super smart and awesome and shit way.

    Of course he doesn't say it that way. It is all about "taking away people's freedoms."

    Worse: He seems to think that since there are lots of hospital beds available RIGHT NOW that the stay-at-home policy is not needed. Holy crap I am not going to bother writing how stupid that is but I guess that is just a manifested pitfall of always being some super smart and awesome as shit. Bill Gates once pointed out that success is a very poor teacher and this is a good illustration of that.

    We are not seeing his best moments. Excuse me while I go buy up some more TSLA stock.

    • Since when did Bill Gates suddenly become a source of slashdot wisdom to look up to?

      He used to be seen here as Darth Vader. And rightly so.
      • He used to be seen here as Darth Vader.

        Well, I am not the "here" you refer to. I judge statements on their merit. Not on what "side" I am on or what other people seem to think is cool.

        For example as much as I despise Trump and make no secret of it I can still go point to cases where I judge he said or did the right thing. I don't happen to be pro or anti Gates but if that insight is actually his he is right regardless about how I feel about him.

        In this case I mentioned I was partisan for Musk, making no secret of that either. I think th

      • Darth Vader would either support the quarantine, or renegotiate.

        He would not whine about it.

        He used to be a fucking Jedi, he at least has basic competence and leadership capability.

        Bill Gates isn't on twitter whining, he's spending time and money responding to the crisis! In consultation with medical professionals.

    • by hey! ( 33014 )

      There's a special kind of stupidity that only really smart people have. You just get used to being right when most people around you disagree.

      Also you've got to factor in the billionaire shame-exemption card. When I read the National Enquirer tried to blackmail Bezos with dick-pics, I laughed my ass off. Did they think people would start *shunning* him?

      A self-made billionaire may well be a genius, but he's not some to got to for
      a critical perspective.

    • Excuse me while I go buy up some more TSLA stock.

      TSLA last trade $701.32
      52 wk high $968.9899
      52 wk low $176.9919

      Yep, looks like a steal! (/lol)

  • by AxisOfPleasure ( 5902864 ) on Saturday May 02, 2020 @10:32AM (#60014424)

    In case you've never heard of Gerald Ratner, he had a string of well known jewellry shops in the UK in the 1990s. The products were cheap but OK for most people. One day he said at a formal public meeting that his products were cheap because they were crap. His business lost £500 million overnight, he hired a new chairman to save it. A few weeks later the new chairman pulled off a coup and sacked Ratner from his own company and renamed it!

    A lesson to that moron Musk to shut his big, fat yap before someone decides they can run his business better than him!

    • A lesson to that moron Musk to shut his big, fat yap before someone decides they can run his business better than him!

      I expect the SEC to make the decision for him. You don't get to shoot off your mouth and make billions evaporate when you're a CEO. That affects the fortunes of REAL people, like hedge funds. He lost the Chairmanship of Tesla for his last public stupidity. He's going to lose the CEO position for this one. And he might be better off. He's obviously under too much stress, and the woman he's with is making it worse.

  • Tech CEOs are totally opposed to lifting the lockdown. With nothing else to do people on lockdown are working 16 hr days. Tech productivity has shot up like crazy.
    They also know when the lockdown is lifted people are going to take days off to travel and decompress from these 16 hr days. Tech CEOs are quivering in their shoes for the day the lockdown is lifted.

    Musk is an exception as he needs his factory to run but if his factory had been in China like Apple, Google etc and his engineers were on lockdown wor

    • With nothing else to do people on lockdown are working 16 hr days. Tech productivity has shot up like crazy.

      That's because those people are new at working from home. They're afraid that the boss think they're slacking off at home so they grossly over-compensate. Given them a few more months and reality will settle in and the working hours will go down, possibly lower than when they were at their workplace, before settling back up to what should be their normal working hours.

    • Any reference for that 16 hours thing? Our code checkin rate has remained about the same.
  • Otherwise they would be a hard reflection of the actual measured (work hours * skill) of the company.

    Not some ridiculous emotional belief palm, swaying to the guff of every six-toed born-to-be-wealthy pony fucker.

    Remember: The purchase power of your and my salary indirectly depends on that crap! That is NOT OK!

  • Sounds like Musk is on his way to insanity also.

  • by Hentai007 ( 188457 ) on Saturday May 02, 2020 @11:21AM (#60014556)

    Elon isn't Tony Stark, he's Zapp Brannigan.

  • Seriously, this time he fucked up when he said that the stock is overvalued. Personally, I agree with him on it, but, as a stock holder, I have the right to say that, while as CEO, he does not.
  • Can't believe you all fell for that, you're all just as stupid as the lamestream media. Musk is clearly a very stable genius.

  • by stikves ( 127823 ) on Saturday May 02, 2020 @05:58PM (#60016028) Homepage

    There are ways to still run the factories even while taking precautions and making sure we adhere to social distancing. Things will move more slowly, and become more expensive, but that does not mean there are no ways to do it.

    You can divide the work into more shifts, add cleaning sessions in between, "quarantine" the teams (different shifts do not engage each other), add testing on site, for everyone, for every shift, before and after. And many others.

    A factory is already an orderly place with many existing rules and regulations. Adding more is cumbersome but doable.

    Shutting down it entirely is just wasteful. We can agree on a percentage 10%, 30%, 50% output. But allowing productive people to produce is "essential".

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