Tesla chief Elon Musk, who is known for his outspoken comments, has gathered another controversy which led to a massive drop in his company’s own share value.
Musk on Friday tweeted that Tesla’s share price is “too high”, which led to a $14 billion wipe off the carmaker’s value.
“Tesla stock price is too high imo” (in my opinion), Musk said in a tweet.
Musk himself lost $3 billion following the tweet.
Tesla stock price is too high imo
— Elon Musk (@elonmusk) May 1, 2020
Tesla’ share price sank 10.3 per cent on Friday to close at $701.32.
This sharp fall came after shares of Tesla had jumped nearly 85 per cent this year due to a rise in production and analysts lauding the company for being well-positioned towards an expected transition to electric cars.
This is not the first time that Musk got into trouble due to his tweets and was even charged with fraud and a fine of $20 million by US securities regulator when in August 2018 he had said that “funding secured” for car maker to go private.
Musk later reached a settlement in with SEC in April 2019 where he was asked to avoid speaking on certain topics on Twitter that includes statements about acquisitions, mergers, new products, among others.