Tesla Motors CEO Elon Musk will unveil a new wheeled version of the Model S car in Hawthorne, California October 9, 2014.
Lucy Nicholson | Reuters
Tesla CEO Elon Musk appeared to be behind the huge GameStop boost, tweeting out a link to a Reddit board that has largely been monitoring the stock.
Shares of GameStop rose more than 60% after hours traded Tuesday following a Musk tweet, which linked to the Reddit page “wallstreetbets” containing over 2 million subscribers. Tesla CEO tweeted on “Gamestonk !!”
The stock entered earlier in the day after Capital Palihapitiya at Capital Capital announced in a tweet that it had bought GameStop call options, promising that the stock will go higher. The stock closed 92.7% on Tuesday.
Musk’s notifications to some companies have affected stock prices in the past. Earlier Tuesday, he tweeted about a knitted wool hat he bought for his dog on Etsy. That raised shares of the company by as much as 8% in pre-sale trading, although it eventually closed down 2.1%.
The CEO has been facing problems with the SEC for tweeting about Tesla stock. In August 2018, he said he wanted to take Tesla private at $ 420 per share and had secured the funding to do so. Musk and Tesla each had to pay a $ 20 million fine to the SEC to settle the suit, and since then Musk has agreed to submit his public statements about Tesla’s finances and other matters to investigation by his legal advice. He infamously tweeted last year that Tesla stock was “too high,” putting shares down more than 10% immediately, even though they had more than gone back within a week.
The CSS did not immediately respond to a request for comment.
– CNBCs Lora Kolodny contributed to this report.
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