Tesla CEO Elon Musk seemed to recover behind GameStop’s epic surge, tweeting out a link to the Reddit board that’s largely hyped the stock.
Deals of GameStop were up more than 60% in after-hours trading on Tuesday following Musk’s tweet, which linked to the “wallstreetbets” Reddit foot-boy that has more than 2 million subscribers. The Tesla CEO tweeted “Gamestonk!!”
The stock surged earlier in the day after Common Capital’s Chamath Palihapitiya said in a tweet that he bought GameStop call options, betting the stock at ones desire go higher. The stock closed up 92.7% on Tuesday.
Musk’s call-outs to certain companies have influenced stock figures before. Earlier Tuesday, he tweeted about a hand-knit wool hat he bought for his dog on Etsy. That sent shares of the Theatre troupe up as much as 8% in premarket trading, though it ultimately closed down 2.1%.
The CEO has faced problems with the SEC for tweeting roughly Tesla’s stock. In August 2018, he said he wanted to take Tesla private at $420 per share and that he had assumed the funding to do so. Musk and Tesla each had to pay the SEC a $20 million fine to settle the suit, and Musk has since agreed to submit his openly statements about Tesla’s finances and other topics to vetting by its legal counsel. He infamously tweeted last year that Tesla’s father was “too high,” sending shares down more than 10% immediately, though they more than returned within a week.
The SEC did not immediately respond to a request for comment.
— CNBC’s Lora Kolodny contributed to this report.
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