Tesla’s April Fool’s Day prank pushed up its share value

By | April 2, 2015
Tesla's prank

Teasing and playing around on April Fool’s day is not just between friends and family. This year many tech giants has fooled many with their tech pranks. One among the tech giants is Tesla, who at the end of the day tweeted about their launch of the Tesla Model W that turned out to be a April Fool’s day prank.

Model W is a watch that “is in no way a competitive response to what some other company is doing,” read the press release.

Minutes after the announcement,  shares of the company leaped about $1.50 or around 0.75 from its level the moment before to as high as $188.50. The shares trading reached heaviest one minute of trading when almost 400,000 shares were traded at that time, since the opening 60 seconds of trading on Feb 12. The company shares returned most of the surging and ended the session at $187.59, down 0.63% from Tuesday’s close.

Tesla's prank

The picture attached to the Tesla’s tweet

If only, the investors had a closer look at the tweet or looked at the picture attached to the tweet, they would have realized it was April Fool’s day prank about Tesla releasing a watch. But an extra few seconds is like eternity on Wall Street. The statement from the company looked like a counter attack of the recent launch announcement of Apple that it was introducing a computerized watch later this month called Watch.

Many tech giants like Google, Amazon and Twitter have had it as a tradition of playing April Fool’s pranks, which was mostly about introducing fake products. Maybe, Tesla’s announcement was too subtle to find out or the company’s investors were too hasty to make decision based on unclear tweets.

A representative at the U.S Securities and Exchange Commission declined to comment about the incident nor did the representative for Tesla.

Tesla, later sent emails to the investors that the statement was an April Fool’s Day prank and the declaration was one of the two pranks produced by the company on Wednesday. The prank was a video was an ad of new driverless car Model S that helps its owner to escape traffic and parking tickets.

Though many investors laughed it out and moved on, there are few investors are pissed off with the company right now.