Elon Musk mocks regulators, short-sellers as Tesla soars
Tesla shares finished the official trading day up nearly eight percent, meaning investors who bet on the stock tumbling by “shorting” shares had money-losing positions.
The California firm’s market capitalization jumped to some $224 billion, as it raced ahead of Toyota to become the most valuable auto firm.
“Tesla will make fabulous short shorts in radiant red satin with gold trim,” Musk tweeted.
“Will send some to the Shortseller Enrichment Commission to comfort them through these difficult times.”
The reference was evidently a play on the name of the Securities & Exchange Commission, which Musk has clashed with in the past.
“SEC, three letter acronym, middle word is Elon’s,” Musk said in a separate tweet.
Musk, who turned 49 years old last month, is seen as a visionary and inventive boss but is also highly unpredictable, especially on Twitter, where he often communicates in defiance of rules imposed on executives of publicly traded companies.
Fraud charges stemming from a Musk tweet once cost him and the company $20 million and implementation of a requirement that his social media use be supervised by Tesla.
Tesla’s rise came as Detroit stalwarts General Motors and Fiat Chrysler reported sagging auto sales amid the coronavirus pandemic.
The company still sells only a fraction of the autos of rivals, yet it has captivated investors’ imaginations as a bet on the future under charismatic leader Musk, who has challenged conventional wisdom on CEO comportment while also trying to shift the industry towards electric cars.
Disclaimer: Validity of the above story is for 7 Days from original date of publishing. Source: AFP.