GameStop jumps as Elon Musk tweeted the Reddit board that was hyping the shares
Tesla CEO Elon Musk appeared to be rallying behind GameStop’s epic upswing and tweeted a link on the Reddit board that largely dwarfed the stock.
GameStop’s shares rose more than 60% in after-hours trading on Tuesday following the Musk tweet linked to Reddit’s “wallstreetbets” page with more than 2 million subscribers. The Tesla CEO tweeted “Gamestonk !!”
The stock rose earlier in the day after Social Capital’s Chamath Palihapitiya said in a tweet that he bought GameStop call options and bet that the stock would go up. The share closed on Tuesday at 92.7%.
Musk’s calls to certain companies have previously affected stock prices. The previous Tuesday, he tweeted about a hand-knitted woolen hat he bought for his dog on Etsy. This caused the company’s shares to gain up to 8% in premarket trading, although it ultimately closed 2.1%.
The CEO struggled with the SEC for tweeting about Tesla’s stock. In August 2018, he said he wanted to take Tesla private for $ 420 per share and had secured funding for it. Musk and Tesla each fined the SEC $ 20 million to settle the lawsuit, and Musk has since agreed to submit his public statements on Tesla’s finances and other issues to their legal counsel for review. He infamously tweeted last year that Tesla’s shares were “too high” and that stocks immediately fell more than 10%, despite more than recovering 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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