Tesla (TSLA) stock price jumped more than 4% today to keep the momentum of a rebound after a tough start of the year. The latest increase comes after Elon Musk claimed he is deleting his Twitter account.
The stock was down 46% year-to-date before a turnaround last week added almost $40 to the price per share.
The automaker was aided by a strong shareholders meeting and indications that the reports of demand issues are false and Tesla might be on track for a record quarter in terms of deliveries.
But that was last week.
On Monday, Tesla’s stock went on another significant rally without any significant news being released this weekend.
However, CEO Elon Musk did post a series of strange tweets and later said that he “just deleted” his Twitter account:
He made the statement after getting some heat on Twitter for posting a drawing without crediting the artist and refusing to do so when asked.
Some are speculating that Musk’s announcement that he is leaving Twitter is the reason behind Tesla’s stock rally today.
Musk’s use of Twitter has been both a tool to help Tesla in the past by reaching a large audience to promote its products and correcting misleading media reports, but it has also gotten him in trouble and arguably negatively affected Tesla.
Most notably when the SEC went after him for tweets about bringing Tesla private and Tesla’s production rate.
While Musk said that he deleted his Twitter account, it is not exactly accurate. His account is still active and he could continue posting on it. He simply changed his username to ‘Daddy DotCom’.
I doubt that Elon is serious about deleting his Twitter account. Was the refusal to give credit weird? Yes. Should he delete his account for it? Probably not.
While I agree there were a few periods of time when Elon slipped on Twitter and probably negatively affected Tesla through his comments on there, I believe that his use of the social media has been mostly beneficial to Tesla.
What do you think?
In my opinion, when he uses his account to talk about Tesla’s product and technology, it is always extremely positive.
To some degree, it’s also useful for him to use it to dispel misleading things said in the media about the company, but I think this too often turns into attacks and negativity.
My two cents is that he should only use his account to spread positivity about Tesla and his other companies and not focus on the negative stuff. It will go away over time as Tesla succeeds.
What do you think? Let us know in the comment section below.
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