Tesla’s tokens on crypto-trading exchange FTX Exchange was 7.5% lower than its actual share price in early morning trading on Monday after founder Elon Musk hinted at selling a part of his stake in the electric vehicle manufacturer.
On Sunday, Musk posted a poll on Twitter asking if he should sell a 10% stake in Tesla. He added that he would “abide” by the poll results, whatever be the results. At the end of the poll, 57.9% of 3.51 million people who voted said that Musk should sell a 10% stake.
The result and the price movement of Tesla’s tokens on FTX Exchange suggest that its share price will open lower when Wall Street opens on Monday. The Tesla tokens on FTX Exchange are traded every day of the year, 24 hours a day.
Musk tweets’ move markets
Musk’s Tweets have affected Tesla share prices in the past as well. Most famously, the US Securities and Exchange Commission had sued Musk regarding his tweets that he could take Tesla private at $420 per share, a substantial premium to its trading price at the time and that funding for the transaction had been secured.
Subsequently, Musk had settled the fraud charges with the SEC after agreeing to step down as chairman of Tesla, appointing additional independent directors and paying a $40m fine.
Musk’s tweets have also caused massive surges and dips in the cryptocurrency market. Most recently, on 6 October, his tweet about his pet dog led to a surge in the prices of the Shiba Inu meme cryptocurrency.
Bitcoin price move
Similarly, in June one of his tweets triggered a 10% jump in the prices of Bitcoin.
Read more: China’s Ganfeng Lithium rises on supply deal with Tesla
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The main difference between CFD trading and stock trading is that you don’t own the underlying stock when you trade on an individual stock CFD.
With CFDs, you never actually buy or sell the underlying asset that you’ve chosen to trade. You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional stock trading you enter a contract to exchange the legal ownership of the individual shares for money, and you own this equity.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional stock trading, you buy the shares for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks.
CFDs attract overnight costs to hold the trades, (unless you use 1-1 leverage)
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