Stock Market Cafe
  • Home
  • Trading News
  • Email Whitelisting
  • Privacy Policy
  • Home
  • Trading News
  • Email Whitelisting
  • Privacy Policy
No Result
View All Result
Stock Market Cafe
No Result
View All Result
Home Trading News

A Tesla Executive Sold Stock. It Wasn’t Elon Musk.

by
November 21, 2021
in Trading News
0
0
SHARES
0
VIEWS
Share on FacebookShare on Twitter
Text size

A Tesla vehicle is on display at a showroom in the Aventura Mall in Miami, Florida.

Joe Raedle/Getty Images


Tesla

investors got a small surprise Friday after the market closed, with the electric vehicle maker disclosing another stock sale by a top executive. But this one didn’t come from its CEO, Elon Musk.

Musk’s stock sales have become a big deal for Tesla (ticker: TSLA) investors, requiring them to check in daily and keep track of the CEO’s trading activity. Musk committed to selling 10% of his stake in the company, after posting a

RELATED POSTS

Hasbro warns of weak holiday quarter results, cuts 15% of its workforce

FDA advisors recommend replacing original Covid vaccine with bivalent omicron shots for all doses


Twitter

(TWTR) poll on Nov. 6 which asked if people backed the move.

When the survey was posted, that worked out to about 17 million shares. That’s a lot of stock—and large amounts of shares being bought or sold will move a company’s stock price significantly. Since the poll, Musk has sold about 7.6 million shares, including ones that were sold to pay taxes when exercising expiring management stock options. The sales have netted about $8.2 billion in proceeds.

They’ve also created an overhang for Tesla: Its stock has fallen about 7% since Musk tweeted the survey. (The

S&P 500
has been flat over the same time period, while the

Dow Jones Industrial Average
has slipped about 2%.)

But Friday’s sale, disclosed on a Form 4 filed with the Securities and Exchange Commission, wasn’t Musk offloading some of his holdings: Instead, Tesla CFO Zachry Kirkhorn sold 1,250 shares worth about $1.3 million. Kirkhorn has about 53,700 shares of Tesla stock left, which are worth approximately $61 million.

Even if Musk hadn’t sold a lot of stock recently, investors always like to track insider stock sales. As long-time Barron’s editor Alan Ableson once eloquently put it, there are many reasons for an insider to sell, but the stock going up isn’t one of them. Insider sales can be a signal that things are as good as they’ll get for a company.

Kirkhorn’s sale doesn’t fit that bill, though. The transaction is part of a Rule 105b-1 plan, which is a regulator-approved system used by corporate insiders to sell stock in a prearranged fashion so they don’t run afoul of insider trading rules. These types of plans also avoid giving the market a signal about how an insider feels about their company’s stock price. Kirkhorn’s plan was put in place back in May 2020.

This isn’t the end of tracking insider sales at Tesla. To hit Musk’s 10% self-imposed goal, he would need to sell another 9 million to 12 million shares, depending on how Musk counts the options-related sales toward his target.

Write to Al Root at allen.root@dowjones.com

ShareTweetPin

Related Posts

Hasbro warns of weak holiday quarter results, cuts 15% of its workforce

by
January 26, 2023
0

In this article HAS Follow your favorite stocksCREATE FREE ACCOUNT Game maker Hasbro Justin Sullivan | Getty Images Shares of...

FDA advisors recommend replacing original Covid vaccine with bivalent omicron shots for all doses

by
January 26, 2023
0

The new COVID-19 booster which includes protection for Omicron at AltaMed Health Services in South Gate on Thursday, October 6,...

Bernstein analyst on Intel earnings: ‘I don’t think I’ve ever seen anything quite like this before’

by
January 26, 2023
0

Intel 's earnings miss and weak guidance is "something special," according to Bernstein senior analyst Stacy Rasgon. The company missed...

Stocks moving in after-hours: Intel, Hasbro, Visa

by
January 26, 2023
0

S&P 500 4,060.43 +44.21(+1.10%)   Dow 30 33,949.41 +205.57(+0.61%)   Nasdaq 11,512.41 +199.06(+1.76%)   Russell 2000 1,903.06 +12.75(+0.67%)   Crude...

FDA advisors recommend replacing original Covid vaccine with bivalent omicron shots for all doses

by
January 26, 2023
0

The new COVID-19 booster which includes protection for Omicron at AltaMed Health Services in South Gate on Thursday, October 6,...

Next Post

These are the six stocks to watch in the red-hot cybersecurity sector

Vietnamese carmaker VinFast plots course for US market, starting with two electric crossovers

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

email

Get the daily email about stock.

Please Enter Your Email Address:

By opting in you agree to our Privacy Policy. You also agree to receive emails from us and our affiliates. Remember that you can opt-out any time, we hate spam too!

MOST VIEWED

  • Crocs sees fourth-quarter sales up 42%, CEO Andrew Rees says 2021 was ‘exceptional year’

    0 shares
    Share 0 Tweet 0
  • Biden didn’t accept Putin’s ‘red lines’ on Ukraine – here’s what that means

    0 shares
    Share 0 Tweet 0
  • Buying a car from the factory sounds expensive, but it can actually save you money. Here’s how to do it.

    0 shares
    Share 0 Tweet 0
  • The states that won’t tax military retirement in 2022

    0 shares
    Share 0 Tweet 0
  • Roth TSP vs. Roth IRA: How Do They Compare?

    0 shares
    Share 0 Tweet 0
  • Home
  • Trading News
  • Email Whitelisting
  • Privacy Policy
All rights reserved by www.stockmarket-cafe.com
No Result
View All Result
  • Home
  • Trading News
  • Email Whitelisting
  • Privacy Policy

All rights reserved by www.stockmarket-cafe.com