A single tweet from Elon Musk today added more than a billion dollars to the market cap of his electric car company Tesla.
The Tesla CEO was simply posting a teaser about an announcement to come at the end of April:
Major new Tesla product line — not a car — will be unveiled at our Hawthorne Design Studio on Thurs 8pm, April 30
— Elon Musk (@elonmusk) March 30, 2015
It’s more likely to be a new type of battery than a car.
Some observers are convinced that it will be based on the design that powers the company’s automobiles, yet large enough to keep the lights on at home.
On a conference call last month, Musk said his company will “unveil the Tesla home battery, the consumer battery that would be for use in people’s houses or businesses fairly soon”.
Whatever it will be, it caused a huge run on Tesla stock, which rose nearly 4 per cent immediatley following Musk’s post. That’s around a $US900 million ($1.178 billion) added to Tesla’s market cap.
It settled at $US190.57, a 3.01 per cent gain for the day.
Recently, Musk has felt compelled to clarify his position amid claims he tweets teasers deliberately to affect share prices.
He didn’t have too much trouble shutting the accusations down:
Neither I nor the company are selling shares. Even if we were, I wouldn’t do this. It would be wrong. Our long term results are what matter.
— Elon Musk (@elonmusk) March 16, 2015