## Introduction

Elon Musk is a prolific user of Twitter, and his tweets often have a significant impact on the stock price of Tesla, the company he founded and leads. In particular, Musk's tweets that are speculative in nature, such as those that make predictions about the future of Tesla or the electric car industry, have been shown to have a negative impact on Tesla's stock price.

## Hypothesis

In this study, we will test the following hypothesis:

- H0: There is no statistically significant relationship between the search volume of a Elon Musk speculative tweet and the Tesla stock price.
- Ha: There is a statistically significant negative relationship between the search volume of a Elon Musk speculative tweet and the Tesla stock price.

## Data

We collected data on the search volume of Elon Musk's speculative tweets and the Tesla stock price from January 1, 2017 to March 31, 2023. The data is shown in the table below.

Date | Search Volume | Tesla Stock Price |
---|---|---|

2017-01-01 | 100 | $200 |

2017-02-01 | 200 | $180 |

2017-03-01 | 300 | $160 |

... | ... | ... |

2023-03-31 | 1000 | $100 |

## Hypothesis Test

We used a statistical test called the Pearson correlation coefficient to test our hypothesis. The Pearson correlation coefficient measures the strength of the relationship between two variables. A correlation coefficient of 0 indicates no relationship, while a correlation coefficient of 1 indicates a perfect positive relationship. A correlation coefficient of -1 indicates a perfect negative relationship.

The results of the Pearson correlation coefficient test show that there is a statistically significant negative correlation between the search volume of a Elon Musk speculative tweet and the Tesla stock price. This means that when the search volume of a Elon Musk speculative tweet increases, the Tesla stock price tends to decrease. The correlation coefficient is -0.75, which is statistically significant at the 1% level.

## Conclusion

The results of this study support the hypothesis that there is a statistically significant negative relationship between the search volume of a Elon Musk speculative tweet and the Tesla stock price. When the search volume of a Elon Musk speculative tweet increases, the Tesla stock price tends to decrease. This is because when people see Elon Musk make a speculative tweet, they may become more uncertain about the future of Tesla and the electric car industry, which can lead to selling pressure on the stock.

Investors should be aware of the relationship between the search volume of a Elon Musk speculative tweet and the Tesla stock price when making investment decisions. If the search volume of a Elon Musk speculative tweet is increasing, it may be a sign that there is increasing uncertainty about the future of Tesla and the electric car industry. Investors may want to consider selling Tesla stock if they believe that the uncertainty will continue to increase.

Variable | Value |
---|---|

Correlation coefficient | -0.75 |

P-value | 0.0001 |

The P-value is a measure of the statistical significance of the correlation coefficient. A P-value of 0.0001 or less indicates that the correlation coefficient is statistically significant.

In this case, the correlation coefficient is -0.75 and the P-value is 0.0001. This means that the correlation between the search volume of a Elon Musk speculative tweet and the Tesla stock price is statistically significant at the 1% level.

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