Elon Musk calls for investigation of Robinhood after trading of GameStop stock suspended

Elon Musk calls for investigation of Robinhood after trading of GameStop stock suspended
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The world’s richest man, Tesla founder Elon Musk, has added his voice to the growing call to investigate the investing app Robinhood over its decision to suspend buys of GameStop, AMC and other volatile stocks currently being traded by Reddit users who have taken it upon themselves to fight Wall Street hedge funds.

Robinhood made the sudden decision to suspend trade of the volatile stocks in the premarket hours of Thursday, as the price of GameStop soared to a high of $380 per share — a value well above its real market value, ahead of companies like Delta Airlines.

Musk responded to a tweet by Rep. Alexandria Ocasio-Cortez, who said that it was necessary to question Robinhood’s decision to suspend trading for its users while hedge funds remain able to trade the stock freely. 

“Absolutely,” wrote Musk. 

Musk has been a leading proponent of the efforts to prop up so-called meme stocks, and hold to account short-sellers that are trying to devalue stocks like Gamestop, AMC, and other weak stocks.

Earlier this week, the billionaire tweeted “Gamestonk!!” and linked to the Reddit community r/wallstreetbets, where users initially planned the mass buying of GameStop stock. The stock value ballooned to pass the $200 mark after Musk tweeted it out. 

After the Reddit group was banned from its chat server on the application Discord, Musk referred to Discord as having “gone corpo,” a reference to the video game Cyberpunk 2077. 

On Thursday, Musk shared a tweet saying hedge funds should not be allowed to control financial apps like Robinhood, describing shorting as a scam that is “legal only for vestigial reasons.”

Elon Musk has been a critic of the stock market and urged his followers to endorse cryptocurrencies, referring to Bitcoin as his “safeword,” and has endorsed a little-known cryptocurrency called Dogecoin. 

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  • By Ezra Levant

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