Robinhood’s CEO Vladimir Tenev faced a torrent of questions from Elon Musk for halting Reddit GameStop investors from buying just when the stock witnessed a meteoric rise.
Musk grilled Tenev on Clubhouse, an exclusive audio app, and he asked the moderators to turn the volume on so that everyone invited to the session could hear what excuse Tenev had to offer for that fault.
What did Elon Musk ask to Vladimir Tenev?
The CEO-to-CEO showdown went over 90 minutes in which Musk asked many disturbing questions to Tenev that latter said that some questions into conspiracy theories. The discussion started with the first question about what made the trading app to halt buying on the hottest stocks of the market at some point last week.
He asked Tenev to spill the beans as people were eager to know why they couldn’t buy GameStop shares. Robinhood ordered freezing of GameStop shares exactly when the stock was high in demand. And the action resulted in online ire and subsequent questioning by Elon Musk.
What was the reason of Robinhood’s action of freezing shares of certain companies?
Robinhood restricted buying stock of GameStop, AMC Entertainment and other companies after it noticed that rise in stock could be due to a social media push. It found its uses discussing buying and holding GameStop stock that the buyers considered undervalued. But they actually wanted to punish deep-pocketed hedge funds that the though had shorted the stock. It happened on the last Thursday.