What's Elon Smoking?

Updated: Jun 22, 2020

Tesla shares plunge after Elon Musk tweets that price is 'too high'.

Tesla shares have fallen by 10pc after Elon Musk declared that the company’s stock price was “too high”, the latest in a series of controversial statements.

Mr Musk, the electric car company’s chief executive, tweeted “Tesla stock price is too high, imo” on Friday morning. Shares, which were trading almost 3pc down earlier in the day, quickly fell further to sit 10pc down for the day.

Friday’s drop cost Mr Musk, who has an 18.5pc stake in Tesla, around $2.7bn (£2.2bn).

Mr Musk's public comments, including his tweets, are supposed to be approved by a company lawyer if they cover topics such as Tesla’s financial condition, future guidance, or events regarding its shares, under an agreement reached with the Securities and Exchange Commission (SEC), the US markets regulator in 2018.

The SEC declined to comment on whether it considered Mr Musk’s tweet to fall under the settlement, or if it planned to take action.