6 Times Elon Musk Moved Markets With His Tweets

00:00:02 elon musk is among the five most followed people on twitter so it’s no surprise his tweets move markets from tesla stock to cryptocurrency and even gamestop we decoded six times elon musk’s tweets moved the markets when musk revealed he’d made an offer for twitter tesla stock lost nearly 40 billion dollars in value in one day his next tweet announcing the buyout cut 12 off tesla stock that’s about 100 billion when musk tweeted that the deal was on hold twitter stock fell by 18 in pre-market trading

00:00:41 musk owns 17 of tesla so all the twitter news has also hurt his net worth in all it has dropped by 49 billion dollars since he first offered to buy twitter that would now equate to about a quarter of his total net worth musk’s political tweets also have an impact in may he announced he would no longer vote as a democrat but as a republican tesla stock nosedived to its lowest value since august 2021 shaving 12.3 billion dollars off musk’s net worth and analysts have found that when musk tweets more tesla’s stock moves more

00:01:23 musk lost 50 billion dollars after he tweeted i propose selling 10 of my tesla stock he took that to a poll more than 3.5 million people voted with over half choosing yes following the tweet tesla stock fell nearly 12 and the company’s valuation dropped 200 billion dollars by the end of the trading week it also marked the biggest two-day decline on the billionaire’s index his posts influence huge brands too in january 2021 musk tweeted i kinda love etsy at z stock shot up nine percent in pre-market trading it marked

00:02:05 the biggest gain for any company in the s p 500 before the market opened that same month musk gave gamestop a massive boost with this tweet gamestop shares surged 50 in after hours trading and shot up another 105 the next day now some big brands like wendy’s are tweeting at musk hoping to cash in on his influence in december 2020 one word from musk moved the market doge he was referring to the cryptocurrency dogecoin which shot up 20 it got another 27 boost in april this year when musk announced that twitter

00:02:46 had accepted his buyout offer dogecoin holders were hoping that the cryptocurrency would be used to make payments on twitter most recently musk tweeted that spacex merchandise can be bought using dogecoin giving it a 10 boost musk’s own net worth though has been dropping but while it’s at the lowest since august he is still by far the richest person on earth [Music] [Applause] [Music] you

…………..

Managing Market Volatility

Scenario:
Elon Musk’s tweets are having an enormous impact on the financial markets—from massive drops in Tesla stock to sudden surges in cryptocurrency values. Imagine that you work as financial advisors at a boutique investment firm. Your firm has a high-net-worth client who is very concerned about the volatility caused by these tweets and is considering changing their investment strategy.

Task:
In pairs, you will assume the roles of a financial advisor and a market analyst. Your goal is to discuss and develop a brief advisory strategy for your client that addresses the following points:

1. Risk Assessment:

   • Identify which parts of the client’s portfolio might be most affected by social media-driven market volatility (e.g., stocks, cryptocurrencies).

2. Mitigation Strategies:

   • Propose one or two strategies to mitigate risk. Consider options such as diversification, hedging, or setting up automated stop-loss orders.

3. Communication:

   • Discuss how you would explain your strategy to the client in simple, reassuring language.
   • Consider addressing questions like: “How can we protect your investments without missing out on potential gains?” and “What steps can we take immediately versus in the long term?”

4. Evaluation of Social Media Influence:

   • Debate whether the client should pay attention to tweets by influential figures like Musk or if they should focus on long-term trends.
   • Provide arguments for both sides, and decide on a balanced recommendation.

Instructions:

• Step 1: Spend 2 minutes brainstorming ideas individually.
• Step 2: Pair up and take 10 minutes to discuss the scenario and jointly develop your advisory strategy. Use notes if needed.
• Step 3: Prepare to present a concise summary (about 2 minutes) of your recommendations to the class.

Guiding Questions (to support your discussion):

• What types of investments in your client’s portfolio are most susceptible to short-term market swings?
• Which risk-mitigation strategies do you think are most effective in a highly volatile market?
• How do you balance the impact of dramatic, short-term events (like tweets) with long-term investment goals?
• What is your advice on whether to monitor influential social media activity or to ignore it?

…………..