Markets

Why Tesla Stock Fell Friday

What happened

Shares of Tesla (NASDAQ: TSLA) plummeted on Friday. The stock was down about 11.6% as of 12:06 p.m. EDT.

While bearishness in the overall market on Friday likely weighed on the stock some, most of its decline came after CEO Elon Musk tweeted, "Tesla stock price is too high imo" -- "imo," of course, means "in my opinion." 

Tesla's Models S, 3, X, and Y parked on a paved area in the mountains

Tesla vehicles lined up. Image source: Tesla.https://ts.la/TeslaPressKit

So what

Musk's comment on Tesla's stock price comes after shares have skyrocketed. The growth stock is up nearly 200% over the past 12 months and almost 70% year to date.

In addition to his tweet about Tesla shares being overvalued, the CEO also said on Twitter that he is "selling almost all physical possessions. Will own no house." In the seemingly random tweetstorm, Musk also added, "Now give people back their FREEDOM."

Musk's tweets on Friday come two days after the outspoken CEO lashed out in rant during Tesla's earnings call about orders for businesses to shut down amid the coronavirus pandemic. Stay-at-home orders were "fascist," he said in the expletive-laden rant.

Now what

These erratic tweets from a high-profile CEO likely concern many investors. Musk has used Twitter as a platform to speak his mind unrestrained on occasions in the past. Some of his tweets have even led to Musk losing his seat as chairman of the company's board of directors.

Find out why Tesla is one of the 10 best stocks to buy now

Motley Fool co-founders Tom and David Gardner have spent more than a decade beating the market. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*

Tom and David just revealed their ten top stock picks for investors to buy right now. Tesla is on the list -- but there are nine others you may be overlooking.

Click here to get access to the full list!

 

*Stock Advisor returns as of April 16, 2020

 

Daniel Sparks has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Tesla and Twitter. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

TSLA TWTR

Latest Markets Videos

The Motley Fool

Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

Learn More