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The Elon Musk effect: a tweet “drives the shares of companies that have nothing to do with him crazy”

Elon musk it has the power to send whatever it wants to the clouds, and we’re not saying that for SpaceX. The Tesla boss is capable of positively influence with a simple tweet and proof of it is Etsy. After I posted “I love Etsy,” the e-commerce company’s stock jumped 10% in a matter of hours.

The reason Elon Musk loves Etsy is because he bought a Marvin the Martian hand knitted hat for his dog. Musk’s tweet took effect almost immediately, as according to Business Insider, Etsy shares are up 2.2% a few minutes from the publication.

Although the Etsy figures have already stabilized and are at the same level as yesterday, the power that Elon Musk has is still striking. A few days ago, the CEO of SpaceX recommended people to use Signal, the privacy-focused messaging app.

Elon Musk tends to generate financial tsunamis

With a simple “Use Signal”, Musk generated an increase in the number of users. Interestingly, the tweet also caused a financial tsunami at Signal Advance Inc., a company that has no relationship with the messaging app. The Texas company saw its stock value multiply by six and had a rally of more than 5,100% over three days, increasing its market valuation.

Another example is a The Idolmaster meme that Musk posted in mid-January. This simple action caused the shares of Bandai Namco, creators of the video game, to rise 4.4% on the same day. Unlike Etsy, the reasons why Musk tweeted the meme are unknown, though that didn’t matter to the Japanese company.

Not all tweets are good

Elon Musk / Tesla

In contrast, Elon Musk’s tweets have also caused disruptions at his company. An obvious case occurred in mid-2020, when the manager published “The price of Tesla shares is too high.” This caused Tesla shares to plummet within minutes, wiping out more than $ 14 billion from the electric car maker’s value.

Elon Musk’s tweets about Tesla they cost him a fine by the Securities and Exchange Commission in 2018. After publishing that it may have obtained funds to take Tesla off the stock market and privatize it, regulators fined the company with $ 20 billion. The Commission also imposed a restriction on all Musk’s posts to be pre-authorized by attorneys.

Despite that, the Tesla boss continues to do his thing and on certain days he makes the sun shine for some companies thanks to his tweets.

The article The Elon Musk effect: with a tweet he “drives the shares of companies that have nothing to do with him” was published in Hypertext.