Elon Musk Loves Etsy. Here's Why

Online marketplace Etsy (ETSY) saw its share price surge over 6% in premarket trading on Tuesday after Elon Musk revealed that he too loves the one-of-a-kind shopping site.

The TESLA CEO, who has a knack for market reactions, simply tweeted “I kinda love Etsy.” This was enough to send the stock into a frenzy at 6:25 a.m. EST and set it on course to be the biggest gainer in the S&P 500 as the market opened, CNBC reported.

Musk made the revelation about Etsy after buying a “hand knit wool Marvin the Martian helm” for his dog, which he also told his fans about in a Twitter post.

The 49-year-old businessman has been known for driving his fanbase toward companies he deems worthy of his attention.

Earlier this month, Musk suggested that his followers convert to Signal over WhatsApp as the chat app changed its privacy policy, allowing Facebook access to more user data. Signal downloads popped as a result.

Musk has also influenced his own company’s stock price. In May 2019, he sent Tesla’s prices soaring after tweeting that the electric car company’s share prices were “too high.” A week later, Telsa stock was up 7%, according to CNBC.

Etsy, which has found a sweet spot with consumers during the pandemic as they turned to online shopping sites during stay-at-home orders, has seen its shares increase by 340% over the last 12 months and 25% in 2021 alone, CNBC said.

Etsy CEO Josh Silverman said in a statement about the company’s third-quarter 2020 earnings this fall, “Consumer shopping habits have been greatly influenced by the events of 2020, and Etsy truly stands for something different. We’ve been able to sustain growth by driving retention and frequency of our existing buyers as well as becoming an important shopping destination for new buyers.

Etsy has a revenue growth of 128% for the quarter, which it attributed to “focused execution, engagement with our buyers and sellers, and our strong brand, underpinned by the unique inventory in our marketplace.”

Shares of Etsy were trading at $208.17 as of 10:50 a.m. EST, down 64 cents or 0.31%.