GameStop jumps as Elon Musk tweets on the impressive Reddit board

GameStop jumps as Elon Musk tweets on the impressive Reddit board

Tesla Motors CEO Elon Musk unveiled a new all-wheel drive version of the Model S in Hawthorne, California on October 9, 2014.

Lucy Nicholson | Reuters

Tesla CEO Elon Musk appears to be rallying behind GameStop’s epic boom, as he tweeted a link to a Reddit board that spurred a massive stock increase.

GameStop shares rose more than 60% in after-hours trading on Tuesday after Musk’s tweet, which linked to the Reddit “wallstreetbets” page, has more than 2 million subscribers. Tesla CEO tweeted “Gamestonk !!”

The stock surged earlier in the day after Social Capital’s Chamath Palihapitiya said in a tweet that he had bought GameStop calling options, and had bet that the stock would rise. The stock closed up 92.7% on Tuesday.

Musk’s calls for some companies have affected share prices before. Earlier Tuesday, he tweeted about a hand-knitted beanie that he bought for his dog on Etsy. This sent the company’s shares up as much as 8% in pre-market trade, although it ultimately closed 2.1% lower.

The CEO ran into trouble with the Securities and Exchange Commission for tweeting about Tesla shares. He said it was in August 2018 He wanted to make Tesla special at $ 420 per share And he’s got the funding to do so. Musk and Tesla each had to pay a $ 20 million fine to the Securities and Exchange Commission to settle the lawsuit, and Musk has since. Agreed to submit His public statements about Tesla’s finances and other topics are subject to scrutiny by its legal advisor. He infamously tweeted last year that Tesla’s stock was “too high,” sending stocks down more than 10% instantly, even though they rebounded more than once in a week.

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The Securities and Exchange Commission did not immediately respond to a request for comment.

CNBC’s Laura Kolodny contributed to this report.

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