Summary
Tesla board members and executives have sold over $100 million in stock since early February as the company’s shares decline.
Board member James Murdoch sold $13 million in stock on March 10, coinciding with Tesla’s worst single-day drop in five years.
Kimbal Musk sold $27 million in shares last month, and board chair Robyn Denholm offloaded over $75 million through a predetermined plan.
The sell-offs come as Tesla’s stock has fallen nearly 50% since December.
The wise ones sold as much stock as possible.
Tesla stock is most likely to drop way more. Global sales being down about 50% for February, demands the stock must fall even more.
Even corrupt government contracts can’t compensate for the loss of global marketshare every Musk nut was so convinced would increase to a degree where Tesla would be bigger than all other car companies combined.The stock price was always ridiculously high, and it still is.
The P/E ratio is off the charts. Things will get really interesting after the Q1 earnings call on April 29th.
I wouldn’t be surprised if Tesla chooses to cook the books.
It will be very strange if numbers aren’t in red.Oh man, that would be so illegal! The SEC would surely step in to investigate that, right?
Right?
…right…?
We have looked at several book covers, and everything seems fine.
They might pull an Oracle and stop reporting certain numbers and aggregate them with something else. Like when oracle stopped reporting cloud revenue as it’s own line item.
BuT bUt BuT tHiNk AbOuT tHe MaSsIvE dIvIdEnD pOtEnTiAl WhEn ItS tEcH fUlLy MaTuReS! iT mAkEs Me FeEl LiKe I gEt To OwN sUm SpAcEx ToO!!!
For someone who knows nothing about stocks, what is a P/E ratio?
The price the market is willing to pay for one share of stock vs the amount of profit the company is making per share.
A P/E of 90 means someone is willing to pay $90 for a share of a company that is netting $1 of profit for each outstanding share it has.
Musk basically ate through the massive bump he got after Trump’s Nov 4th win.
The real pain for that stock is coming. It was already way overpriced before the election, and the speculators pumped it up even more.
Also consider that if you bought the stock mid December 2020, it’s the exact same value today!!!
That’s a return to where it was more than 4 years ago. 😋Remember, they had a 5:1 split in Aug 2020 and a 3:1 split in Aug 2022.
If you bought in Dec 2020, your share volume tripled.
Every consumer stock ticker I’ve seen already factors those splits into the pricing scheme
Good point. I’m a moron.
Ah OK, I didn’t know that.
Rats fleeing a sinking ship.
I wanted to join the selloff party so badly, I traded all my Total Market ETF holdings for (Tesla-free) Large Cap Value ETFs, and with the change left over I bought the cheapest Tesla Puts I could find.
I just love that open pessimism for Friday’s Put contracts!
Are we still pretending this wasn’t the plan all along? I predicted this a long time ago, and I’m a dummy.
Here it is. The only part I missed was Musk leaving the company. But the day is still young.
There’s a hole in that theory. musk has secured billions of credit with his Tesla shares. If Tesla goes down, musk goes down
If musk owes the bank a million dollars, musk has a problem. If musk owes the bank billions of dollars, it’s the banks problem.
In other words, the banks will bend over backwards to support him, his businesses, and his loans, whatever gives them the best chance of collecting.
Yes, he will have to sell stock, which further continues the death spiral of tesla and musk. Genius hasnt deversified and is all in on Tesla and is in debt. “The richest man on earth” is just his stocks. When he loses that, he lost everything.
The bank doesnt care, they will get their money. musk does indeed care.
Live by the meme, die by the meme
Looking into the sale by James he shared in his form 4 filing that his sale was to cover the transaction cost in exercising his non-qualified stock options (NSO). This sale results in closing part* of his NSO grant and acquisition of 477,011 shares. The net cash value of the sale comes out to $196k. This should result in ordinary income tax of roughly $42M.
* I’m not actually sure how NSOs work here. It’s unclear to me if there are still exercisable options in this grant or any other outstanding grants.
The shares were sold to cover the exercise price relating to the exercise of stock options to purchase 531,787 shares, which are scheduled to expire in 2025.
https://www.sec.gov/Archives/edgar/data/1318605/000177134025000004/xslF345X05/edgardoc.xml
Rats, sinking ships, etc.
