The world’s richest man is no stranger to using the social media platform Twitter Inc TWTR to share his opinions on numerous topics. A tweet in 2020 highlighted the share price of one of his own companies.
What Happened: On May 1, 2020, Tesla Inc TSLA CEO Elon Musk tweeted he thought the share price of his electric vehicle company was too high.
The tweet came as a surprise as many CEOs avoid commenting on the share price of their companies if publicly traded. Most CEOs would also avoid saying that their share price was overvalued as it could lead to shares trading lower.
Musk’s tweet also came with several other posts about rethinking his “attachment to the material world,” which included the CEO saying he would sell his physical possessions.
Some thought Musk’s account was hacked, but years later the tweet remains.
Tesla is the most tweeted topic by Musk according to a survey tracking his tweets back to 2012. Musk is in the process of acquiring Twitter with a bid of $54.20 per share.
Related Link: Tesla Q1 Earnings Highlights: Electric Vehicle Maker Hits Record Revenue, Deliveries, Profits
Investing $1,000 In Tesla: If investors agreed with Musk that shares were overvalued and sold or avoided an investment, they missed out on some strong gains.
Shares of Tesla were trading at $761 when Musk sent out his tweet. A $1,000 investment in Tesla at the time of Musk’s tweet could have purchased 1.31 shares of the company.
Tesla later had a stock split in August 2020, which gave investors five shares of Tesla for every one share they owned. The 1.31 shares owned would have turned into 6.55 shares of Tesla.
Another stock split in August 2022 gave investors of Tesla three shares for every one share they owned. The 6.55 shares of Tesla would have turned into 19.65 shares.
The $1,000 investment in Tesla would be worth $5,309.63 today based on a price of $270.21 for Tesla at the time of writing.
The investment in Tesla would be up 431% over the last two years and four months since Musk's tweet.
While Musk thought shares of Tesla might have been overvalued at the time, they later showed their value.
© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.