Tesla shares tanked close to 12% on Friday after CEO Elon Musk write on Twitter that Tesla's stock price is "too high."
Musk did not provide any reasoning for why he feels the stock price is too high.
Earlier this week, Tesla posted a surprise profit of $1.24 per share for the March quarter versus an expected loss, and revenue roughly in-line with estimates.
On a call with shareholders, Tesla's first quarter financial results were overshadowed by Musk's profanity-laced commentary on the shelter-in-place orders that have temporarily closed Tesla's Fremont, Calif.-based factory, with Musk calling the orders "fascist."
The company did not revise its delivery target of 500,000 vehicles for full year 2020, though many analysts doubt it can meet this goal given widespread demand and manufacturing disruptions to Tesla caused by the pandemic.
Musk’s massive compensation package that’s tied to a number of company milestones, including the company’s trailing market cap exceeding $100 billion over 30 days and six months, are not threatened by the latest decline.
Even after Friday's fall, Tesla’s market value stood at over $130 billion and its average trailing six-month figure was $99.1 billion, according to Bloomberg. This first giant pay tranche would net Musk about $730 million if he sold the shares immediately, based on Thursday’s closing price.
Musk's Twitter account and erratic behavior have landed him and the company in hot water before.
In 2018, he agreed to a settlement with the SEC over a a tweet claiming that Tesla had "funding secured" for a go-private deal that never happened. That tweet triggered a significant rally in the stock.
Terms of the SEC settlement required that Tesla "put in place controls" overseeing Musk's tweets, among other penalties. It's not clear if the Friday tweet was vetted by anyone at Tesla.
Musk also faced a defamation trial after he posted a baseless claim on Twitter that Vern Unsworth, a cave diver who was involved in a high-profile rescue of Thai schoolchildren, was a "pedo guy." Musk was ultimately found not liable in that case.