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Tesla Motors CEO Elon Musk unveils a new all-wheel drive version of the Model S car in Hawthorne, Calif., October 9, 2014.
Lucy Nicholson | Reuters
Tesla CEO Elon Musk appeared to rally behind GameStop’s epic push on Tuesday, tweeting a link to the Reddit board that heavily promoted the action.
GameStop shares, which jumped 92.7% on Tuesday, rose more than 60% after-hours trading following Musk’s tweet, which was linked to the more than 2 million Reddit “wallstreetbets” chat room of subscribers. Tesla CEO tweeted “Gamestonk !!”
The stock surged earlier in the day after Social Capital’s Chamath Palihapitiya said in a tweet that he had bought GameStop call options, betting the stock would rise.
Musk’s calls to some companies have already influenced stock prices. Earlier on Tuesday, he tweeted about a hand-knitted woolen beanie he bought for his dog on Etsy. This pushed the company’s shares up to 8% in pre-market trading, although it ultimately closed down 2.1%.
The CEO ran into trouble with the SEC for tweeting about Tesla’s stock. In August 2018, he said he wanted to make Tesla private at $ 420 a share and had secured the funding to do so. Musk and Tesla each had to pay the SEC a $ 20 million fine to settle the dispute, and Musk has since agreed to submit his public statements on Tesla’s finances and other matters for his legal counsel’s review. . He infamously tweeted last year that Tesla’s stock was “too high”, sending even higher stocks a week later.
– Lora Kolodny contributed to this report.
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