Elon Musk and social media react at all-time high

Tesla’s stock price hit $420 on Wednesday afternoon, sparking reactions from social media users and the company’s CEO Elon Musk.

“As predicted in the prophecy,” Musk wrote in an X post that included a screenshot of the stock.

Tesla shares have hit the threshold before, but on Wednesday the share price crossed the $420 threshold for the first time since the stock split in August 2022.

Musk teased in 2018 that he would “consider delisting Tesla” if the stock price reached $420, but the company is still publicly traded despite exceeding the meme benchmark more than once.

After the 2018 tweet in which he said he had “secured funding” to take the company private, a jury found Musk was not responsible for misleading investors.

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The 70% year-to-date rise in Tesla’s share price comes after Musk, the founder of SpaceX and owner of X, was named co-head of the Department of Government Efficiency (DOGE).

Musk and entrepreneur Vivek Ramaswamy were chosen by President-elect Donald Trump to lead DOGE. According to Trump, DOGE will provide advice and guidance from outside the government and work with the White House and the Office of Management and Budget to “advance large-scale structural reforms and create an entrepreneurial approach to government that has never been seen before.” “

Tesla also had its “We, Robot” event, where Musk unveiled a self-driving taxi and also introduced the company’s humanoid robot called Optimus.

Tesla did stock splits: what is it?

A stock split occurs when a company’s board of directors decides to increase the number of the company’s outstanding shares by issuing new shares to existing shareholders in a set ratio, causing current stock prices to decrease, according to the Financial Industry Regulatory Authority.

Tesla has already performed a stock split twice, on August 31, 2020 and two years later on August 25, 2022. A stock split would not change the market value of the company, but would make the stock more attractive to a broader audience minus investors by lowering the stock price .

A short-term impact of a stock split can be that it “causes a stir,” which can cause stock prices to rise for a while, Forbes reports. A long-term impact would be to keep the company’s share price low, but this would only benefit the company if it continues to deliver acceptable returns to shareholders.

“Tesla shares are skyrocketing again!”

Musk isn’t the only one commenting on Tesla’s win, as X users have also voiced their opinions, with some cheering the company as the share price hits an all-time high.

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