January 12, 2021, 03:51 PM
Tesla's CEO Elon Musk has sent the share prices of a little-known medical device company soaring more than 5,100 per cent, after confused investors ploughed money into the wrong company.
Musk, who tweeted a two-word recommendation on Jan. 7, was referring to the encrypted messaging service Signal, according to Bloomberg.
Use Signal
— Elon Musk (@elonmusk) January 7, 2021
Investors, however, began buying shares of Texas-based company Signal Advance instead, causing the Texas-based company's shares to surge more than sixfold by the end of Jan. 7.
Three trading days later, the company has surged more than 5,100 per cent, giving it a market valuation of US$390 million (S$518.6 million).
According to CNBC, Signal Advance had no revenue from 2015 to 2016, and the company's CEO is the sole full-time employee.
Not the first time
CNBC also reported that a similar situation occurred in 2019, when some people bought shares of Zoom Technologies, thinking it was the popular video-calling service Zoom Video Communications.
The U.S. Securities and Exchange Commission then stopped trading of Zoom Technologies, partly due to the confusion over its connection with Zoom video.
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Top image via Tesla/YouTube.
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