GameStop jumps in as Elon Musk tweets on the reddit board causing the buzz

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Tesla Motors CEO Elon Musk unveils a new all-wheel drive version of the Model S car in Hawthorne, Calif., October 9, 2014.
Lucy Nicholson | Reuters
Tesla CEO Elon Musk appeared to rally behind GameStop’s epic surge, tweeting a link to the Reddit board that widely promoted the action.
GameStop shares rose more than 60% on Tuesday after hours of trading following Musk’s tweet, which was linked to the Reddit page “wallstreetbets” which has more than 2 million subscribers. Tesla CEO tweeted “Gamestonk !! ”

The stock jumped earlier today after Social Capital’s Chamath Palihapitiya tweeted that he had bought GameStop call options, betting the stock will rise. The stock closed 92.7% higher on Tuesday.

Musk’s calls to some companies have already influenced stock prices. Earlier on Tuesday, he tweeted about a hand-knitted woolen beanie he bought for his dog on Etsy. This pushed the company’s shares up to 8% in pre-market trading, although it ultimately closed down 2.1%.

The CEO ran into trouble with the SEC for tweeting about Tesla stock. In August 2018, he said he wanted to make Tesla private at $ 420 a share and had secured the funding to do so. Musk and Tesla each had to pay the SEC a $ 20 million fine to settle the dispute, and Musk has since agreed to submit his public statements on Tesla’s finances and other matters for his legal counsel’s review. . He infamously tweeted last year that Tesla’s stock was “too high,” immediately pushing stocks down by more than 10%, although they more than bounced back in a week.

The SEC did not immediately respond to a request for comment.

– CNBC’s Lora Kolodny contributed to this report.

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