CD Projekt shares rise after Elon Musk tweet
Cyberpunk 2077 is a 2020 action RPG video.
Alexander Sayganov | SOPA pictures | LightRocket via Getty Images
LONDON – Shares in the Cyberpunk 2077 developer CD project rose Thursday after Elon Musk expressed his admiration for the game.
Tesla’s CEO tweeted a photo of his company’s new sedan, the Plaid Model S, suggesting that cyberpunk, Witcher 3, and several other video games could run.
“It can play cyberpunk,” said Musk. “The aesthetics of cyberpunk are incredible, by the way.”
That tweet appeared to have boosted CD Projekt’s share price sharply on Thursday. The stock rose roughly 12.6% during afternoon trading. It had a tough ride after Cyberpunk was released as gamers complained of multiple bugs and poor performance on older consoles.
Sony even pulled the game out of its digital PlayStation Store and announced that it will be offering players full refunds. Analysts at the time said it was very rare for a console to delist an AAA game because of quality issues.
This trading week was marked by wild volatility in the stock markets, sparked not least by a number of amateur traders inspired by Reddit board r / WallStreetBets, which flooded sharply shortened stocks like GameStop and AMC.
Short selling is a strategy in which investors borrow shares of a stock to sell at a certain price in the expectation that the market value will drop below that level when it is time to pay off the borrowed shares.
It’s not clear if CD Projekt’s price jump on Thursday was the result of brief pressures. According to IHS Markit, 9.3% of CD Projekt’s outstanding shares are currently on loan. The stock gained popularity shortly after the public’s negative reaction to the game.
It wouldn’t be the first time a tweet from Musk has driven certain stocks high. A tweet from the billionaire who said “GameStonk,” linked to the WallStreetBets subreddit and helped GameStop soar on Tuesday after business hours.
And his tweet telling followers to “use Signal” – in reference to the encrypted messaging app that gained popularity after a backlash to a privacy update from WhatsApp – prompted investors to lower Signal’s share price Advance, a manufacturer of small components.