$Tesla Motors(TSLA)$ Elon Musk has exercised all of his tesla options expiring next year, signaling an end to his stock sales that triggered a fall in the share price of the world's most valuable carmaker, and meaning tesla shares may rebound sharply.
In the process, tesla shares lost about a quarter of their value after Musk in November asked his followers on Twitter if he should sell 10% of his holdings. They have rebounded to $1,088.47, but are still below the record closing high of $1,229.91 in November.
Tesla's stock price has been affected by Musk's share sale, there are three main factors:
- First, investors often view stock sales by so-called insiders, such as executives and board members, as negative because they believe insiders have a better idea of a company's prospects than the public.
- Second, the size of Musk's share sale also contributed to the stock's decline. A one-time sale of $20 billion worth of Tesla stock, roughly equivalent to a single day's market turnover, could easily cause the stock to fall because of a supply-demand imbalance.
- Finally, a stock sale would be an unusual move for Musk. He has often borrowed against his Tesla shares but has never sold on such a large scale.
Now, these negative factors will fade away and the stock is expected to rebound sharply. How Tesla was going up when people knew Musk done selling, the price would go right back up after he sold so he could come back all to sell again at high price!?
I'm wondering who holds Musk's bags! Seriously who buys stock & pump when CEO said he would dump 20 billion dollar shares! It's still a puzzle to me how the stock was pumped so he can sell high, meaning small investors lost at least a few billion dollars for him to collect $20 billion.
At last, I would like to ask you to reflect on a few questions:
1. Will Tesla get back to its highs? Where do you expect the share price to go?
2. Will Tesla use the opportunity to split its stock?
3. Are you still willing to bet on Tesla?
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