Shares of Clubhouse Media Group skyrocketed on Monday after a Sunday tweet from Tesla CEO Elon Musk.
The problem is, Musk tweeted about the private audio app Clubhouse, and that’s not the company that has seen massive market share gains as a result. “At Clubhouse tonightIt’s 10pm LA time, ”Musk said on Twitter on Sunday.
Clubhouse Media Group, ticker CMGR, was up about 45% Monday, according to data from Markets Insider. But the company has nothing to do with the Clubhouse speech app, which Musk praised. Last year, a company formally known as Tongji Healthcare Group, Inc. bought a social media influencer called “The Clubhouse.” Clubhouse Media Group operates as “an influencer-based marketing and media company with a global aggregated social media reach of more than 100 million followers,” said a press release from the company.
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“We are not affiliated with the app. We do not want any confusion with them,” a company spokesperson told Insider. ‘We have no idea why the meeting took place. It could have been Elon Musk. We have no idea. ‘
Clubhouse, the company behind the social media voice app, did not immediately respond to Insider’s request for comment.
The Financial Times attributed the massive stock rally to the “Elon Effect,” a reference to Musk. Recently, stocks have recovered from the hype of day traders on platforms such as Reddit. Millions of members of the “Wall Street Bets” subreddit caused GameStop stock to skyrocket, though it cut some of those gains on Monday. Dogecoin, Bitcoin and Tesla have seen similar rallies, the FT said.
Last week, Robinhood stopped users from buying shares of GameStop amid the frenzy. Sunday night, Musk interviewed Robinhood CEO Vlad Tenev on Clubhouse’s audio app. Business Insider covered the bizarre interview, in which Musk questioned Tenev about his choice to block buyers.
Clubhouse’s audio app, which is completely separate from Clubhouse Media Group, is known for hosting Silicon Valley leaders and celebrities. But soon, the CEO said, it will be open to everyone.
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Originally published