How Elon Musk’s memes, jokes, and passing thoughts influence the stock market
When
Elon Musk
posts to X, his 206 million followers, powerful people including President-elect
Donald Trump
, and the stock market listen.
To date, Musk has posted more than 60,000 times on X, the social media network formerly known as Twitter that he purchased in 2022. For years after Musk joined the platform in 2009, he mainly tweeted memes, jokes, and occasionally about his
array of companies
. Now, he posts on X daily about politics, the media, and the corporate landscape.
As the social media company’s CEO, the
richest person in the world
, and a member of Trump’s next administration, even Musk’s passing thoughts on X are taken seriously. When
he joked
about buying the news outlet MSNBC, it prompted
a widespread fake claim
that one of the network’s hosts cried on air in response, even though the company isn’t actually for sale.
Although it may take Musk only a few seconds to craft his posts on X, they have had real influence over what trends online and the price of assets. Here is a look at the times Musk’s words have had immediate impact:
More:
Supreme Court rejects Elon Musk’s appeal in SEC fight over what he can post on X
Defense companies’ stock falls after F-35 criticism
In a series of posts last weekend, Musk ridiculed F-35 fighter jets on X. He shared a video of drone swarms with the caption, “Meanwhile, some idiots are still building manned fighter jets like the F-35.”
Stock prices for American defense contractors, who help manufacture the jets, quickly responded. Lockheed Martin stock declined 3.75% and Northrop Grumman stock fell 2.3%, setting four-month lows for the companies,
according to Investor’s Business Daily
.
Dogecoin soars after new department memes
After Trump announced Musk would co-lead a new Department of Government Efficiency, or DOGE, the valuation of
a cryptocurrency by a similar name
soared.
Musk hyped up Dogecoin, a meme cryptocurrency often associated with the tech billionaire, on X in the hours surrounding
Trump’s statement
. He posted
AI-generated images
and memes including the coin’s
Shiba Inu dog mascot
.
Five hours before Trump’s 6 AM announcement, Dogecoin’s market capitalization was nearly $53 billion.
CoinMarketCap reported
that number rose to $62.8 billion by 10 a.m. the same day. As of this Wednesday afternoon, Dogecoin’s market capitalization was sitting at about $59 billion.
Tesla stock has long fluctuated based on Musk
The Security and Exchange Commission is likely still keeping an eye on Musk’s activity on X years after it told him he needs to be more careful about what he posts regarding Tesla, his electric vehicle company.
The commission first went after Musk in 2018 when
he posted
that he was “considering taking Tesla private at $420. Funding secured.” At the time, the SEC called his posts that boosted Tesla’s stock price “false and misleading.” Musk settled with the SEC, agreeing to pay a $20 million fine, step down as chairman, and agree to get a lawyer’s approval before posting about Tesla.
However, Musk continued to post about the company. When he posted in 2020 that he thought Tesla’s stock price was too high, it closed 10% lower than the day prior, landing him
in more hot water
with the SEC.
Etsy shares jump after four words
On a Tuesday morning in January 2021, Musk was likely scrolling Etsy.
“I kinda love Etsy,”
he wrote in a post
that received 280,000 likes.
His four-word comment powered a temporary 8% stock surge for the e-commerce company known for selling vintage and handmade goods.
Crypto rise after #bitcoin in bio
In the early hours of a Friday morning in 2021, Musk added #bitcoin to his then-Twitter bio on the social platform and posted the message, “In retrospect, it was inevitable.”
The cryptocurrency Bitcoin soared nearly 20% in response after being relatively stable. The surge inspired a rise in Dogecoin’s share price at the time as well,
according to CNBC
.
Reach Rachel Barber at [email protected] and follow her on X @rachelbarber_
This article originally appeared on USA TODAY:
How Elon Musk’s X behavior influences the stock market
