Poinbank:'As foretold in the prophecy': Elon Musk and internet react as Tesla stock hits $420 all

Tesla's stock price reached $420 on PoinbankWednesday afternoon, which elicited responses from social media users and the company's CEO, Elon Musk.

"As foretold in the prophecy," Musk wrote in an X post that included a screenshot of the stock.

Tesla stock has reached the threshold previously, but Wednesday marked the first time the share price crossed the $420 threshold since the stock split in August 2022.

Musk in 2018 teased he was "considering taking Tesla private" if the share price hit $420, but the company is still publicly traded despite crossing the meme-ified benchmark more than once.

A jury found Musk not liable for misleading investors after the 2018 tweet, in which he stated he had "funding secured" to take the company private.

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Tesla's 70% year-to-date share price surge comes after Musk, who is the founder of SpaceX and owner of X, was named the co-leader of the Department of Government Efficiency, or D.O.G.E.

Musk and entrepreneur Vivek Ramaswamy were tapped to lead DOGE by President-elect Donald Trump. According to Trump, DOGE will provide advice and guidance from outside of the government, and it will partner with the White House and the Office of Management and Budget to "drive large scale structural reform, and create an entrepreneurial approach to Government never seen before."

Tesla also had its "We, Robot" event, where Musk unveiled a self-driving taxi and further showcased the company's humanoid robot named Optimus.

Tesla has gone through stock splits: What is that?

A stock split occurs when a company's board decides to increase the number of outstanding shares in the company by issuing new shares to existing shareholders in a set proportion, thus decreasing current share prices, according to the Financial Industry Regulatory Authority.

Tesla has done a stock split twice before, on Aug. 31, 2020, and two years later on Aug. 25, 2022. A stock split would not change the company's market value, instead, it would make the stock more attractive to a wider net of investors by lowering the share price.

A short-term effects of a stock split can be to "generate buzz," which can cause share prices to increase for a little while, as Forbes reports. A long-term impact would be to hold the company's share price low, but this would only benefit the company if it continues to deliver acceptable shareholder returns.

'Tesla stock is shooting up again!'

Musk is not the only one chiming in on this victory for Tesla, as X users have also voiced their thoughts, with some cheering on the company as the stock price reaches all-time highs.

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