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Elon musk raised over 58 million followers on Twitter Inc (NYSE: TWTR). The well-known Tesla Inc (NASDAQ: TSLA) The CEO is active on the social media platform and in 2018 tweeted something that caused him and his business problems while putting more emphasis on the vehicle company electric.
Musk tweets: On August 7, 2018, Musk tweeted that he had secured financing to privatize Tesla at $ 420 per share.
Tesla remains of course a public company and was not privatized in 2018.
The SEC disapproved of the tweet because Tesla did not have funding for a deal and Twitter was not the correct medium to disclose such a transaction.
Tesla agreed to pay a $ 20 million fine and Musk stepped down as chairman of the company for three years.
Tesla’s shares traded lower after Musk later said the company would not go private and was too big to do so.
Related Link: 5 Things You May Not Know About Elon Musk
Invest $ 1,000 in Tesla: Despite the initial drop in Tesla shares, people who bought shares in the electric vehicle company have done well since Musk’s tweet.
Tesla shares were trading at $ 387.45 at their highest on August 7, 2018. A client could have bought 2.58 Tesla shares with $ 1,000.
A 5: 1 split in August 2020 occurred for Tesla shares, turning the 2.58 hypothetical shares into 12.9 shares.
Those 12.9 Tesla shares would be worth $ 8,977.11 today based on a price of $ 695.90 on July 30, 2021.
Investing in Tesla shares on Musk’s go-private tweet caved in an efficiency of nearly 800% in less than three years.
Image by Iván Jesus Rojas from Pixabay
© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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