Tesla’s share price fell sharply on Tuesday following Elon Musk’s vow to sell or keep his Tesla stock according to the result of a Twitter poll
Tesla stock price dropped by almost 11% on Tuesday following controversial tweets by founder of the electric vehicle company, Elon Musk about potentially selling off his Tesla shares.
The share price of Tesla, trading with the ticker TSLA, had slid by 130 points on the NASDAQ as of 7pm on Tuesday as the Big Tech guru once again demonstrated his power over the market and company share price.
The sharp sell-off in Tesla stock comes after the company hit a landmark $1 trillion market cap in October – and Musk’s net worth climbed even higher.
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But what did Elon Musk tweet – and is it the cause of Tesla’s stock drop today?
Here’s what you need to know about the Tesla share price drop, the latest stock price for TSLA and what happened.
How much is Tesla stock worth today?
As of 7.30pm on Tuesday (9 November), Tesla stock was down by approximately 10% at a share price of 1,052.
The plummet in Tesla’s share price came after it opened at 1,174.15 on NASDAQ this morning and crashed down to 1,060.57 within the first hour of trading.
At just after 1pm on Tuesday it had dipped to 1,030.40, returning to the price reached after the electric car giant secured a 100,000 order of its Model 3 vehicles from rental car company Hertz.
But even despite the dip, Tesla stock is still trading up by almost 34% on the last month and over 45% on its year-to-date value.
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What did Elon Musk tweet about his Tesla stock?
On Saturday night, Elon Musk took to Twitter to ask followers on the social media site whether he should sell 10% of his Tesla stock – in a controversial move believed to have largely caused a huge sell-off among Tesla investors.
“Much is made lately of unrealized gains being a means of tax avoidance, so I propose selling 10% of my Tesla stock,” the SpaceX and Tesla founder tweeted on Saturday.
Musk then asked, with a Twitter poll, “do you support this?”.
Responses to his Twitter poll saw around 58% of respondents back Musk’s move to sell 10% of his stock as the founder pledged: “I will abide by the results of this poll, whichever way it goes.”
Later on Saturday evening, Musk added: “Note, I do not take a cash salary or bonus from anywhere.
“I only have stock, thus the only way for me to pay taxes personally is to sell stock.”
Monday saw Tesla’s share price drop by 5% as the market reopened in the aftermath of Musk’s tweets and a huge sell-off mere weeks after the company hit a record share price of $1,208.59 on Monday 1 November.
Did Elon Musk’s tweets cause the Tesla price fall?
As the richest person in the world, Musk’s irreverent tweets can often be easily identified as the reason behind major moves in Tesla’s share price as well as in the prices of cryptocurrencies like Bitcoin, Dogecoin and Shiba Inu coin.
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But while the latest Tesla sell-off and stock dip looks to be mostly fuelled by the founder’s Twitter poll, analysts have identified other possible causes for the sudden drop in Tesla stock.
Musk’s controversial tweets and poll around selling 10% of his own stock came after Musk’s brother and fellow Tesla board member, Kimbal Musk, bought 25,000 shares at $74.14 a piece on 5 November and immediately sold them off for between $1,223.459 to $1,236.623 a share, according to a filing registered with the US Securities and Exchange Commission (SEC).
SEC filings from the company also show that Tesla chair, Robyn Denholm, did the same on 1 November as Tesla hit its new record share price.
Denholm acquired 25,000 Tesla shares at $52.38 a share and sold these on in packs at prices ranging from $1,130.928 to $1,147.312.
Meanwhile, other market analysts have said that the reason behind Tesla stock trading down amid the huge sell-off could be a sign of the company bucking under pressure of its whopping $1 trillion market valuation as production delays and high demand for Tesla models continue.