For people not educated in stock trade. (I know a lot of you here are quite educated, but after reading tweets, i feel this might be required)
@nuckfiggers@neckbeard.xyz @sjw@neckbeard.xyz
A basic economic model of company is quite simple. You sell goods and take all of the profit. The problem is, that you can only work with the money you already do own. Here comes the biggest deal the devil has ever made.
Stonks:
If you "go public" with your company, you can sell your decision power and revenue percentage in exchange for money required to build it faster. Let's say you want to do something crazy, like for instance... Build a fucking clone of NASA. You cannot do that on your own, but the profit is so good, many people would want a piece of it.
Here comes the joke. After the company is complete, you still do not own it and there is only one way of getting it back. And that is to buy it back. "willingly"
But why would people want to sell their parts of the complany back, when it is generating a profit? Because they're dumb.
Most stocks have 2 parts. Their "value" and the part of revenue they generate. Dumb people buy the stocks hoping their "value" will grow, but this value is 100% dependant on who would want to buy it back from you. On the other hand, the decision and revenue are not dependant on this "value" at all.
So... What just happened?
Elon sent a tweet making people want to sell their decision and revenue power for a lover price, so now he can effectively buy perts of his company back at a 7 percent sale (and growing). This has 0 affect on an actual value of the company itself, only on the price of "decision and revenue potencial" called "stock".