So investors may be glad to hear that he is done selling, but they’ve heard that before. Despite routinely saying he would be the last person to sell TSLA stock for the last decade, Musk has sold large chunks of stock several times over the last year. However, Musk has said this many times before, and has still sold Tesla stock. Tesla CEO Elon Musk, Dec 22, twitter space Definitely not next year under any circumstances. I needed to sell some stock just to make sure there’s still some powder dry to account for a worst-case scenario… I won’t sell stock until probably two years from now. You can count on me, no stock sales until 2025 or something. I’m not selling any stock for, I dunno, a minimum of 18-24 months. Today, Musk stated that he wouldn’t sell any more stock: Tesla investors don’t seem to see the upside of these stock sales for the future of Tesla, even though Musk says it will help the EV company in the long term. Musk’s sales have happened in a high-profile way and for inopportune reasons, as well. Generally, insider stock sales send a signal to the market that insiders, particularly the CEO, may not have full confidence in the company’s performance, and add negative pressure to a stock price. Part of the difference could be related to Musk’s recent large sales of Tesla stock, having sold tens of billions over the course of the last year to fund his Twitter acquisition (aka disaster, aka dumpster fire). Surely they’ve had an effect, but Musk is perhaps overstating that effect. Musk contends that fed interest rates are the primary contributor, both because it drives capital flight from equities and into safer bonds as bond yields go up, and because it suppresses demand for consumer products that are often bought with debt, such as autos (or, perhaps, Twitter itself, which Musk took on tens of billions in loans to buy).īut investment experts have countered the assertion that fed rates have driven TSLA stock’s fall, saying that Tesla’s performance has underperformed other stocks in the automotive sector even as bond yields have held steady. The main point of contention with Gerber has been regarding the source of TSLA’s recent price drop. Today he finally went into a public Twitter space to talk about these issues, including with Ross Gerber, the aforementioned investor with whom he has been feuding. Musk has faced many questions about his recent behavior with Twitter, as most of his public time recently has involved getting in fights with investors or trying to stop a routine spending bill. Tesla CEO Elon Musk joined a Twitter space today to speak about the recent moves in TSLA stock and defends his recent actions from Tesla investors who have called for him to stop wasting time on Twitter, the social media site that he recently purchased.
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