Investors Are Confused 🤔
Investors Are Confused
Tesla CEO and now richest man in the world, Elon Musk, is no stranger to twitter, in fact, he is one CEO that is the most active on the platform. Musk’s tweets have varied in category, ranging from expected updates on Tesla and SpaceX to memes and opinions on popular culture. This is a lot of what people love about Elon, the fact that he seems personable and unique, not just another CEO in a boardroom.
One of Musk’s most recent tweets stirred up a bit of a ruckus, not with controversy but instead with the stock market. Musk tweeted “Use Signal” – his endorsement of an encrypted messaging service. Investors who were quick to pounce to conclusions, quickly bought up stock of another company with a similar name called Signal Advance – a tech company with a focus on reducing delays in devices that rely on analog signals. Some have compared this event to what happened earlier this year to when Zoom video calling company was confused with Zoom technologies company. This tweet from Musk single handedly boosted the stock 47% with daily trading volume increasing by 437,000 shares from the average. This is nothing new to Musk, in the past he has shared a number of stock jolting tweets. From saying Tesla is going private to calling the stock overvalued, many Tesla bears find Musk’s behavior a risk liability for their investments and with Tesla’s stock currently over the moon, the wrong tweet could bring in a larger fall. Moreover, interesting behavior such as smoking weed on the Joe Rogan experience are not helping Musk’s case for bears.
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.