How Elon Musk’s crypto tweets have impacted Tesla stocks

BY LISA KIM

Published June 26, 2021

NEW YORK -- Elon Musk’s tweets have moved the cryptocurrency market, lead to sweeping financial news headlines. The closely watched social media activities of the Tesla Inc. billionaire founder with regard to crypto have also sometimes affected Tesla’s stocks, according to my analysis.

Musk’s tweets about digital currencies and Tesla have consistently coincided with an increase in the company’s stock volume bought and sold, as well as a drop in price, analysis showed. A rise in stock volume that is accompanied by a fall in price indicates that more investors are looking to sell their shares. (The analysis did not take into account other factors, such as the electric-vehicle company’s quarterly earnings.)

Musk sent out seven tweets mentioning cryptocurrencies and Tesla between March 7 and June 21. The seven tweets include his back and forth about the electric vehicle seller’s potential transaction in Bitcoin. Those tweets pushed up the stock volume by an average of 0.18% day-over-day, but the stock price slid by 0.003% on those days, the analysis showed. Overall, Tesla’s stock volume and shares both have increased around 0.001% in the cited period.

Go to my Github to find out how I scraped Elon Musk's Twitter