GameStop stock has surged yet again following a recent social media post from Tesla and SpaceX CEO Elon Musk. The stock is trading at more than $366 per share in morning trading, a one-day increase of almost 150 percent.
Tesla and SpaceX CEO Elon Musk recently joined in on the speculation surrounding GameStop stock which has opened up with massive gains this morning. Bloomberg reports that GameStop stock continued its upward trajectory in pre-market trading following a tweet from Musk, and in open market trading has surged as high as $366 as of this writing.
Gamestop has reportedly risen more than eightfold this month in a rally largely fueled by Reddit’s r/WallStreetBets subreddit. Musk, who has previously faced trouble with the SEC over his tweets, simply tweeted “Gamestonk!!” and a link to r/WallStreetBets on Tuesday night.
— Elon Musk (@elonmusk) January 26, 2021
It is suspected that Musk’s tweet, which appears to have positively influenced the GameStop stock price, could have been an attempt to damage short sellers. One financial firm, Melvin Capital, has been short-selling Tesla stock for some time essentially betting that Musk’s company will perform poorly.
Melvin also recently had quite a large short position in GameStop and has lost billions on the stock rally, the firm has since claimed that it covered the majority of its GameStop short bets at “a loss of 100%” but many users on r/WallStreetBets are skeptical of this claim.
Many Wall Street veterans are shocked at the stock’s rapid price increase. Michael Burry who famously bet against mortgage securities before the 2008 financial crisis commented: “This is unnatural, insane, and dangerous.”
Lucas Nolan is a reporter for Breitbart News covering issues of free speech and online censorship. Follow him on Twitter @LucasNolan or contact via secure email at the address firstname.lastname@example.org