Elon Musk, the billionaire entrepreneur and co-founder of Tesla Motors is a widely popular and followed social media personality, which means his tweets are usually capable of generating even stock movements.
This is exactly what happened recently, when some optimistic comments on Twitter about the electric automaker’s expansion prospects in China sparked a rapid rebound of the company’s share price. On Monday around midday his Twitter feed noted the chief executive officer was “very optimistic about Tesla’s long-term future in China, despite our earlier mistakes.” The company had started deliveries back in April in China, the world’s largest auto market, but soon the prospects for the automaker turned gray when sales started to lag in the fourth quarter last year and numerous top executives of the Chinese unit decided to leave the company. Musk added on Twitter – which he uses as a popular PR tool – that he previously met Chinese President Xi Jinping and other government officials and he was now upbeat about Tesla’s prospects in the country.
Tesla has reached a 2-week low of $177.22 recently and the shares rose from $181.80 earlier on Monday to $190.60 after the announcements. Musk added the company was also en route to premiere “a major new Tesla product line — not a car” on April 30 at its southern California design studio. According to various reports, the new product would be a Tesla-branded storage battery for homes, after Musk previously unveiled such plans back in February on the sidelines of the annual earnings conference call.