Elon Musk believes the Stock price of Tesla is “too high”, the action plunges

Elon Musk juge le cours de Bourse de Tesla «trop élevé», l’action plonge

NEW YORK | The manufacturer of electric vehicles, Tesla has plunged on Wall Street Friday, after a series of tweets baffling of his boss, Elon Musk, including one on the grounds that the action “too high”.

The title has finished the session on a dip of 10.3%, after falling by more than 13% a little earlier. It is up over 65% since the beginning of the year.

The market capitalization of Tesla, founded in 2003, is nearly double that of General Motors, Ford and Fiat Chrysler combined despite the fact that these manufacturers sell millions of cars per year.

Tesla hopes to sell half a million cars this year, which will be an absolute record.

“The share price of the Tesla is too high”, wrote, to 11.15, Mr. Musk on his Twitter account, without further develop.

This tweet is likely to attract the attention of the financial markets authority, the SEC, gathering on the communication of information have consequences on the evolution of the Stock market.

As much as it reminds us of another message from 2018 to Mr. Musk about a possible withdrawal of Tesla stock Exchange.

This last tweet had caused an arm of iron homeric between the head of the companies and the SEC, which had resulted in an agreement according to which Elon Musk was deprive of his hat of chairman of the board of directors of Tesla.

Violation

In 2019, after further hostilities, the agreement was amended to enumerate the subjects on which Mr. Musk could not tweet without the green light before the legal director of Tesla.

The list included information on the financial health of the business, potential mergers and acquisitions, the figures of production and sales of cars, new models of cars, purchase of securities and other financial products, Tesla.

Contacted by AFP, to know if Mr. Musk had violated the terms of the agreement with the SEC, Tesla has not given result.

The response does, however, not to doubt, for the financiers who speculated on the stock market meltdown of Tesla.

“The tweet from Musk on the course of action is information in the standards of anyone. How can this not be a clear violation of the agreement” forged with the SEC ?, reacted as soon as the famous american financial Jim Chanos.

Elon Musk, boss in addition to the space company SpaceX, was also launched Friday in a series of tweets, disconnected from each other.

“I’m going to sell all my physical property. Only shall inherit (most) of home”, one can read in one of the messages.

In the other two, the mercurial leader reiterates his criticism sharp against the containment, designed to limit the spread of the Covid-19.

“Go now to the people its FREEDOM”, take it-t-it in a tweet; “Anger, rage against the dying of the light of consciousness,” proclaims another of his messages.

Mr. Musk has described Wednesday of “fascist” containment, believing that this measure, adopted by countries around the world to combat the health crisis, asphyxiait companies.

The leader had closed backwards the californian factory of Tesla on march 19, and wanted to re-open may 4, but the extension of containment and social distancing counteracts this project.

All this has not prevented Tesla will achieve a net profit of $ 16 million in the first quarter, a first for the first three months of the year since the group’s inception 17 years ago.

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