Elon Musk’s praise of Cyberpunk 2077 gave CD Projekt an unexpected stock price bump. Yesterday, Elon Musk made a seemingly innocuous statement about the latest version of the Tesla Model S, noting that the car’s Tesla Arcade will be able to run the recently released Cyberpunk 2077. Musk went on to praise Cyberpunk 2077‘s “esthetics,” praising the game’s interior design. While Musk was talking about one of his electric car company’s vehicles, the mere mention of Cyberpunk seemingly causes CD Projekt’s stock price to surge. The company’s stock jumped by almost 20%, giving CD Projekt its highest price in over 5 years. Over the past week, CD Projekt’s stock price jumped by 40%, pushed along by a frenzy of trading activity that was much higher than normal.
The esthetics of Cyberpunk are incredible btw. The interior design is👌.
— Elon Musk (@elonmusk) January 28, 2021
While it seems strange that a mere mention would cause a stock rally, many amateur investors are looking to Musk for signals on what to invest in. The world’s richest man helped accelerate the ongoing stock rally around GameStop by linking to the /r/WallStreetBets community on Reddit and noting that he lurked on that board’s Discord chat. He also commented when Discord shut down that chat, criticizing the decision. Musk’s praise of Etsy drove additional eyes and investors to that company, although not quite as the same level as the frenzy around GameStop and to a lesser extent CD Projekt. The game maker also benefited from investors looking to push back on short sellers, much in the same way that investors rallied around GameStop. Some traders had shorted CD Projekt after Cyberpunk 2077‘s weak launch, believing that the company’s stock price would drop due to poor word of mouth.
Amateur investors have invaded Musk’s mentions, as a single comment from him seems to cause an instant reaction in the market. Popular search terms on Twitter surround users asking Musk to comment on various “meme stocks” like AMC or BlackBerry.
Despite tons of criticism over various bugs, Cyberpunk 2077 had the biggest digital launch of all time. CD Projekt also released a timeline for future content releases for the game, including continued fixes of the various bugs that caused it to get delisted from various console stores.