Elon Musk’s Incredible Influence On The Market Did you know that one man’s tweets could
move markets up or down by as much as billions of dollars in just a single day?
What’s even more interesting is the fact that he doesn’t even have to post anything,
all that he has to do is to change his Twitter bio and the markets are flooded
or dried! The person we’ve been talking about is none other than Elon Musk.
The effect of his tweets and actions on Twitter is what has come to be referred to as “The Musk
Effect”. Cool right? It should become a term in the dictionary soon given the fact that it has
become so popular that even Forbes also recognizes it. And if you stick around till the end of this
video, you’ll get to know how and why his tweets have such incredible influence on market forces.
In a world where the internet has erased borders and connected everyone as citizens
of a global village, people like Elon Musk seem to be taking full advantage of this.
In the past few months, Elon Musk has consistently been in the news due to reports of his deliberate
use of Twitter publicity to either pump or dump stocks. Therefore, in this video today,
we shall be examining Elon Musk’s incredible influence on the market.
Come along, and we’ll share with you some things you didn’t know before now.
Elon Musk, the Tesla tycoon and SpaceX founder has a current net worth of $163.7
billion (as of 3/03/2021), being second only to Jeff Bezos whose current net worth as of
the 3rd of March 2021 is $177 billion. In the past few months, the duo has continued
to outpace each other in terms of who holds the title of ‘World’s Richest Man’. However,
when you consider real economic power in terms of the ability to pump and dump stocks,
Elon Musk is currently the more powerful of the two. And of course, he is under SEC
investigation for alleged market manipulation. Don’t worry; we’ll get to that later.
Using just his short and sometimes ambiguous tweets, Elon Musk could raise or crash the
price of whatever stock he mentions in his tweets or Twitter actions. As of the 3rd of March 2021,
Musk has 48.8 million followers on Twitter. You might be wondering why he is the most influential
when it comes to stock markets and prices when Bill Gates has 53.9 million followers. Well,
the secret lies in what he does with his Twitter accounts, and we’ll soon let you in on what
exactly he does in order to pump or dump stock prices. But before we do that, let us briefly
examine the top 4 stocks and crypto currency he has so far been influenced a great deal.
It wouldn’t come to you as a surprise that one of the chief stock markets which Elon Musk is
interested in influencing is Tesla — the famous Electric Car producing company. Elon Musk owns 21%
of Tesla’s shares and a lot of his earnings come from the stocks he owns in this company.
Early this year, GameStop GME benefited from Elon Musk’s Twitter publicity.
Signal Advance — a maker of components is yet another stock that benefited from the Musk Effect.
In the world of Crypto currency, the new digital gold, Bitcoin,
and Dogecoin are the two cryptos Elon Musk influenced the most. So,
how did Musk influence the prices of these various assets and stocks? And what evidence shows that
the Musk Effect is true? We will examine each of the above-mentioned stocks and assets in order
to fully understand just how influential Musk’s Twitter activity really is on the global market.
POPULAR STOCKS AND CRYPTOCURRENCIES HE HAS INFLUENCED
TESLA: Being the Chief Executive officer of Tesla and owning as much as 21% of the company’s shares,
Elon Musk had at several times utilized his Twitter popularity to pump the
price of Tesla’s stocks which is partly why he was able to overthrow Bezos earlier this
year from being the World’s Richest Man as Tesla’s share soared so high. However,
Musk’s PR attempt at pumping the price of Tesla stock had sometimes caused trouble for the CEO.
In August 2018, the United States Securities and Exchange Commission
charged him to court over a misleading and “false statement” he posted on his Twitter account.
In the tweet, Musk announced that he’ll be taking Tesla private. Following this announcement,
the price of Tesla’s stock skyrocketed. The SEC sued him for this and won. Musk was fined
$20 million and future tweets about Tesla were to be reviewed by a legal panel before he could post.
GameStop GME: While he is under legal restrictions on posting about Tesla,
his post on other companies such as GameStop GME needs no legal review. In January this year,
Elon Musk supported the WallStreetsBet community by praising the stock in his January 26,
2021, tweet. While the stock closed at $148 after the regular trading session,
Musk tweeted and the price rose to $364 at the pre-market season of the following day. That
was an increase of more than 145% in less than 24 hours. While Musk wanted to pump the price
of GME, the next company we’ll be talking about benefited by accident from his twitter publicity.
SIGNAL ADVANCE: Also in January of this year, Elon Musk tweeted a short message which read “Use
Signal”. His followers thought he was referring to Signal Advance — a producer of medical components.
Before the tweet, the company’s stock sold for $0.60. However, just a few hours after
Musk’s tweets, the company’s stock price rose to 70 dollars, marking about a 1,500% increase!
When Elon Musk got to know that his followers had misinterpreted him and gone ahead to invest in the
company — Signal Advance, he removed the ambiguity in his tweet saying he meant the messaging app
“Signal”. Within minutes of his announcement, the price of the stock plummeted back to its initial
price. Let’s move on to the world of crypto currency where Musk exerts the most influence.
DOGECOIN: On the 28th of January 2021, Elon Musk posted a picture about Dogecoin on his
Twitter account. In four hours after the post, the price of Dogecoin was quadruple the initial price
before Musk’s post. This was not his only post or Twitter activity with regard to Dogecoin.
In fact, many now acknowledge Elon Musk as the face of Dogecoin. The following month,
February 4th, Elon Musk posted several tweets in which he campaigned for Dogecoin again.
These tweets collectively raised the price of Dogecoin by about 44%
as against fiat — dollars. But, that is not his highest crypto influence,
his most incredible crypto market influence was a month earlier and it involved Bitcoin.
BITCOIN: In the world of digital gold or crypto currency, Bitcoin reigns supreme. Despite Elon
Musk’s unstable stance regarding Bitcoin in times past, the Billionaire scored his biggest and most
influential market pump price hit on the 29th of January 2021 when he changed his Twitter bio to
#Bitcoin. On that very day, the price of Bitcoin increased by 8.43% as one Bitcoin was previously
sold for about $32,000 but jumped to nearly $38,000. Bitcoin’s market capitalization was
also increased by $50 billion at the close of that day. It was a monumental market influence
as Binance — the biggest crypto currency exchanger reported that their systems were
overloaded with Bitcoin transactions on that day. These are samples of just how influential Elon
Musk really is when it comes to the world of pumping market prices of stock and cryptos.
With over 48 million followers on Twitter, he’s got several millions of investors waiting on the
next market tweet he will post regarding stock or crypto. His influence on crypto currencies is
especially crazy. Well, that is the essence of crypto currencies anyway. It is meant to
be a decentralized system under the control of the masses and not individual governments. But,
given the incredible influence and power that Elon Musk has to ‘manipulate’ the markets,
he could literally pump or dump the price of any crypto as he pleases.
Do you like the fact that Elon Musk wields such great influence on global market prices
or does the prospect of one man having so much economic power scare you?
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