Shares of Clubhouse Media Group skyrocketed on Monday after a Sunday tweet from Tesla CEO Elon Musk.
The problem is that Musk tweeted about the private Clubhouse audio app, which is not the company that has a big share increase as a result. “At clubhouse tonighat 10:00 LA time, ”Musk said on Twitter on Sunday.
According to Markets Insider, Clubhouse Media Group, CMC, gained about 45%. But the company has nothing to do with the Clubhouse voting program that Musk put forward. Last year, a company, formally known as Tongji Healthcare Group, Inc., acquired a social influence firm called ‘The Clubhouse’. According to a press release from the company, Clubhouse Media Group is a marketing and media industry with a global total social media reach of more than 100 million followers.
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“We are not connected to the app. We do not want any confusion with them at all,” a company spokesman told Insider. “We have no idea why the protest happened. It may have been Elon Musk. We have no idea.”
Clubhouse, the company behind the voice app for social media, did not immediately respond to Insider’s request for comment.
The Financial Times attributes the massive share to the ‘Elon effect’, a reference to Musk. Recently, shares have climbed on hype from day traders on platforms like Reddit. Millions of members of the subreddit “Wall Street Bets” soared GameStop shares, although it increased some of the profits on Monday. Dogecoin, Bitcoin and Tesla have seen similar marches, the FT said.
Last week, amid the madness, Robinhood stopped users from buying shares of GameStop. Musk interviewed Robin Ten CEO Vlad Tenev on Sunday night about the clubhouse audio app. Business Insider reported on the bizarre interview in which Musk questioned Tenev about his choice to block buyers.
The Clubhouse audio app, which is completely separate from Clubhouse Media Group, is known for hosting leaders and celebrities in Silicon Valley. But soon, the CEO said, it will be open to everyone.
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Originally published