Tesla CEO Elon Musk had previously been warned about making market-altering statements
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Elon Musk once made a bold seven-word complaint about Tesla’s stock price, which ended up wiping a staggering $14 billion off the company’s market value.
Musk, who became Tesla’s largest shareholder in February 2004 and was appointed CEO in October 2008, has since led the company to incredible heights.
From launching the Tesla Roadster into space to releasing the long-awaited Cybertruck, his influence on Tesla's success has been undeniable.
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Not to mention, he earned the title of the world’s richest person along the way.
However, Musk’s rise hasn’t been without its share of controversies.
In 2018, Musk falsely claimed that he was close to securing a buyout for Tesla, which led to an investigation by the US Department of Justice.
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The result? Musk had to agree to a settlement that required him to clear all market-moving statements with Tesla's legal team before sharing them publicly.
This applies to any format, including social media.
Elon Musk is required to seek advice from his team before posting some remarks on social media
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Fast forward two years and Musk was in hot water again—this time for tweeting about Tesla’s stock price.
In a candid tweet, Musk wrote, "Tesla stock price too high imo" to his then 33 million followers on Twitter (now X).
What followed was an immediate plunge in Tesla’s stock value.
At the time, CNBC reported that Tesla shares fell by as much as 12 percent, eventually closing down at 10.3 percent.
The BBC further reported that a whopping $14 billion was wiped off the company’s value.
To make matters worse, Musk’s tweet also knocked $3 billion off his own personal stake in Tesla.
Later, Musk admitted to The Wall Street Journal that he didn’t have the company’s legal department review the tweet before posting it, despite his agreement with the SEC.
After the tweet, Daniel Ives, an analyst at Wedbush Securities, told Reuters: "We view these Musk comments as tongue in cheek and it's Elon being Elon.
"It's certainly a headache for investors for him to venture into this area as his tweeting remains a hot button issue, and [Wall] Street clearly is frustrated."
The businessman is currently ranked as the world's richest person
Jared Siskin/Patrick McMullan via Getty Images
In more recent news, Musk has found himself embroiled in legal trouble yet again, this time in a criminal lawsuit filed by Olympic boxer Imane Khelif.
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The 25-year-old Algerian boxer made headlines after a gender eligibility controversy surrounding her opponent Angela Carini, who exited their bout just 46 seconds in.
Despite Khelif being born a woman, reports suggested she failed the International Boxing Association’s gender eligibility test.
Famous figures like Musk and author J.K. Rowling commented on the situation online, leading to their inclusion in the lawsuit, where they are accused of committing "acts of aggravated cyber harassment."