Elon Musk Tweets Tesla Is 'Too High,' Stock Tanks

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Tesla  (TSLA) - Get Report shares dove Friday after Elon Musk made a tweet regarding the stock price. 

The stock fell 11.44% to $692 a share. 

Here’s what Musk tweeted Friday late morning: 

"Tesla stock price is too high imo.” It is unclear what “imo” means, but it could possibly mean ‘in my opinion.’ 

This potentially raises several legal questions. 

In August 2018, Musk tweeted that Tesla had secured financing for a $420 per share take-private transaction, which proved to be closer to untrue than to true, resulting in a legal battle with the Securities and Exchange Commission. 

Lawyers were quick to point out that a cardinal sin in financial markets is by speaking untruthfully in order to manipulate the stock price. Musk ultimately agreed with the SEC to refrain from using twitter to make comments that are important regarding Tesla or the stock. 

Tesla recently posted a profit for its quarter amid challenges posed by coronavirus and the shares rose. The stock is now 21% below its all-time high hit earlier in 2019. 

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