Tesla (NASDAQ:TSLA) is in the news once again after a regulatory filing on Tuesday revealed that Elon Musk sold about $4 billion worth of the company’s shares. The Tesla CEO spun off 19.5 million shares between November 4 and November 8, taking the total amount sold by him this year beyond $19 billion. Tesla’s stock price started to fall yesterday, and that trend continued in post-hours trading.
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The tech tycoon’s move came after he announced earlier this year that he had no plans to sell any more shares of Tesla. The latest divestiture reduces Musk’s stake in the company to around 14% and his fortune to around $195 billion.
This is not the first time Musk has sold Tesla shares. Last year, he sold more than $16 billion worth of Tesla shares to pay taxes on exercising vested stock options. It is also important to note here that Musk recently bought Twitter for $44 billion, which involves $13 billion in loans and a $33.5 billion equity commitment. This makes investors anticipate whether he will use proceeds from the sale of Tesla shares to cover some of that cost.
Investors had somewhat anticipated more sales of Tesla shares by Musk, which made them flee from the company’s stock, leading to a decline of around 44% of its value from last November and more than 50% this year thus far.
Is Tesla Stock a Buy, Sell, or Hold?
Wall Street is cautiously optimistic about Tesla stock, with a Moderate Buy rating based on 19 Buys, seven Holds, and four Sells. The average price target of TSLA stock is $302.05, which indicates an upside of 58% from the current price level.
Tesla has had a slew of insider sales lately, giving the stock a negative Insider Confidence Signal.
