Because of Musk’s tweet, investors lost $12 billion in 10 days
Investors who held both long and short positions in Tesla stock lost a combined $12 billion when Elon Musk announced on Twitter that he had the funds to privatize the electric car maker at a price of $420 per share. Business Insider writes about this.
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Losses of investors
Investors with 10 days left of their funds filed a lawsuit against Musk after he tweeted in 2018 about “secured financing.”
Both those who held long positions and those who held short positions in the company’s shares suffered when Musk’s comments caused sharp fluctuations in stock prices.
The amount of losses in the amount of $12 billion applies to all investors, not just those who sued Musk.
Read also: Investors accused Elon Musk of lying
After Musk’s tweet on August 7, which said: “I am considering the possibility of privatizing Tesla at a price of $420. Funding is provided”, the price of Tesla shares jumped by 10%. It continued to rise, but then fell as the veracity of the tweet was called into question and the SEC began an investigation.
Musk himself said that he was confident that his tweet about the secured financing was accurate, based on his discussions with Yasser Al-Rumayan, the manager of the Saudi Arabia Private Investment Fund, who, he said, verbally expressed support for the privatization plan.
Author: 
News feed editor Anna Nedogybchenko. She writes on the following topics: Finance, banks, economy, investments
Source: Ministry of Finance
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