• Investing
  • Stock
Round Table Thoughts
  • Economy
  • Editor’s Pick
Home Investing Is it safe to buy Tesla stocks after Elon Musk’s recent selling?
Investing

Is it safe to buy Tesla stocks after Elon Musk’s recent selling?

by December 16, 2022
by December 16, 2022 0 comment
Share
0
FacebookTwitterPinterestWhatsapp

Elon Musk, Tesla’s CEO, is all over the news. After completing the acquisition of Twitter, a social media company, he has been under pressure to come up with capital to fund it.

Given that he is the major Tesla (NASDAQ:TSLA) shareholder, he sold millions of shares past the announcement of taking Twitter private. Most recently, he sold another 22 million shares of Tesla, worth about $3.6 billion.

Fillings with the US financial market regulator reveal that the selling took place at the start of this week – Monday, Tuesday, and Wednesday. Naturally, Tesla’s stock price was under severe pressure.

In fact, it is one of the worst-performing stocks of the year.

Tesla underperforms NASDAQ 100 by a mile

2022 was not a pretty year for stock market investors. Only the last couple of months saw the stocks bouncing from the lows, but they remain in negative territory.

The tech sector, in particular, had suffered a lot.

But the NASDAQ 100 index bounced from the lows and is down only a little over 10% on the year. Yet, Tesla’s stock price declined by close to 60%.

Tesla chart by TradingView

What is happening with Tesla?

Tesla investors worry that Elon Musk’s recent acquisition of Twitter is diverting his attention from running Tesla properly.

After reaching a market capitalization bigger than $1 trillion at the end of last year, Tesla dropped to less than $500 billion recently. And, given the selling pressure from its own CEO, the decline is likely not over.

The problem with Tesla’s stock is twofold.

On the one hand, from the beginning, Tesla raised $32 billion in equity capital and earned a profit of about $9 billion. But in the meantime, the CEO sold about $40 billion of shares and still needs to sell some more.

On the other hand, many Tesla investors call for the company to start a stock buyback program. But what difference would the program make if the CEO hits the bid with billions of dollars worth of stock when the price is already down by about 60% on the year?

To sum up, despite dropping by 60% this year, Tesla’s stock price cannot bounce as long as Musk keeps selling. One needs to question why does Musk sell at the current price if the company, according to his own saying, would be worth more than Apple and Saudi Aramco combined?

The post Is it safe to buy Tesla stocks after Elon Musk’s recent selling? appeared first on Invezz.

You Might Also Like
  • Protests erupt across China: are Chinese stocks still investable?
  • Here’s what protests at Foxconn plant mean for the Apple stock
  • Pros And Cons Of Options Trading: Advantages & Disadvantages
  • Harnessing Monte Carlo Simulations for Options Trading: A Strategic Approach
Share
0
FacebookTwitterPinterestWhatsapp

previous post
This tech stock more than doubled on Friday: here’s the catalyst
next post
Inflation softens but stocks still fall, what next?

You may also like

Tesla’s stock price crashes, down -9% on missing 4Q2022 consensus

January 3, 2023

Options Trading Strategy: Bear Put Spread

May 12, 2023

Cowen analyst names Raytheon stock his ‘best idea’ for 2023

November 28, 2022

Five Below breaks out. Here is the next target for...

November 25, 2022

Should you buy the euro amid ECB’s Schnabel keeping a...

November 25, 2022

HSBC share price: Winds of change are blowing

January 2, 2023

Silvergate Capital shares plunge nearly 50% amid crypto-related negativity

January 5, 2023

Grayscale Bitcoin: GBTC discount to NAV narrows to -38.55%

January 10, 2023

Southwest Airlines is doing significantly worse than its peers

December 27, 2022

American Airlines lifts Q4 guidance on ‘strong demand’

January 12, 2023

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Week Ahead: NIFTY Stays In A Defined Range; Moving Past This Level Crucial For Resumption Of Upmove

      May 31, 2025
    • Breakouts, Momentum & Moving Averages: 10 Must-See Stock Charts Right Now

      May 31, 2025
    • Leadership Rotation Could Confirm Corrective Phase

      May 30, 2025
    • Run Your Stock Portfolio Like a Pro Sports Team

      May 30, 2025
    • U.S. foreign tax bill sends jitters across Wall Street

      May 30, 2025

    Popular Posts

    • 1

      Trump-era China sanctions ended by Biden may be...

      June 27, 2024 2,765 views
    • 2

      Walz’s honeymoon with China gets fresh scrutiny as...

      August 9, 2024 2,472 views
    • 3

      Biden appointee played key role in recruiting Chinese...

      June 25, 2024 2,451 views
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful...

      July 10, 2024 2,432 views
    • 5

      Harris VP pick spent years promoting research facility...

      August 29, 2024 2,308 views

    Categories

    • Economy (7,009)
    • Editor's Pick (2,106)
    • Investing (538)
    • Stock (2,582)

    Popular Posts

    • 1

      Trump-era China sanctions ended by Biden may be revived under new House GOP bill

      June 27, 2024
    • 2

      Walz’s honeymoon with China gets fresh scrutiny as Harris camp blasts ‘lying’ critics

      August 9, 2024
    • 3

      Biden appointee played key role in recruiting Chinese businesses to Delaware: ‘Longtime friends’

      June 25, 2024
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful of Chinese spy threats

      July 10, 2024
    • 5

      Harris VP pick spent years promoting research facility that collaborated with ‘Chinese military company’

      August 29, 2024

    Latest News

    • Week Ahead: NIFTY Stays In A Defined Range; Moving Past...

      May 31, 2025
    • Breakouts, Momentum & Moving Averages: 10 Must-See Stock Charts Right...

      May 31, 2025
    • Leadership Rotation Could Confirm Corrective Phase

      May 30, 2025

    Categories

    • Economy (7,009)
    • Editor's Pick (2,106)
    • Investing (538)
    • Stock (2,582)

    Disclaimer: RoundTableThoughts.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024 RoundTableThoughts.com. All Rights Reserved.

    Round Table Thoughts
    • Investing
    • Stock
    Round Table Thoughts
    • Economy
    • Editor’s Pick

    Read alsox

    AMC CEO forgoes pay raise for...

    December 28, 2022

    Boohoo share price could surge to...

    January 12, 2023

    Best Options Strategies for Trading Earnings

    April 14, 2023
    Sign In

    Keep me signed in until I sign out

    Forgot your password?

    Password Recovery

    A new password will be emailed to you.

    Have received a new password? Login here