Tesla shares have been going down ever since Elon Musk announced and started selling his shares, but the stock has risen back to its $1 trillion market valuation in a literal "buy the dip" situation.
Elon Musk's TSLA Shares Sale Affect Price
According to the story by Electrek, since Tesla CEO Elon Musk announced that he would be selling 10% of his stake in Tesla, the company's stock has been going down. Throughout the week, it even lost the incredible gains that it got following Hertz's announcement that it would be buying an additional 100,000 Model 3 EVs, which allowed TSLA stock to surpass $1 trillion for the very first time.
However, the stock started reversing over the last two to three days going from its low of $899.94 to trading around $1,062.42 as per the time of this article and seen on its chart on Yahoo Finance. With that, Tesla's stock has surged a significant 7%, surpassing its mark at $1,000 a share, bringing the company back to a market capitalization of over $1 trillion.
Surge on Price Despite Selling Shares
This particular surge happened on what Electrek stated to be a "slow news day." According to the publication, the main new information contributing to the price increase seems to be Elon Musk's statement saying he believes he was already able to sell enough shares to satisfy his earlier note announcing he will sell 10% of his Tesla stock.
As previously reported by Electrek, it doesn't seem that the CEO sold 10% of his stake based on the number of stock he reportedly owns when he made the announcement. To expand, Musk did sell more than 13 million Tesla shares over the course of last month, putting direct pressure on the stock topping the "bad signal" of the CEO selling his shares.
How Much Tesla Stock Does Elon Musk have Left?
Musk, however, announced and cleared the air saying he still has a few tranches of stock options to exercise, saying when the 10B programmed sales are complete, he will still have a few tranches left, then he will be done selling.
In the last filing by Tesla, the company noted that Musk remains with 2,637,455 stock options to exercise as part of the original plan set in September. With that, however, it sounds like the CEO won't be selling more stock compared to what was initially part of his compensation plan.
As seen on its chart, Tesla stock now seems to be recovering, with its main valuation back to more than $1 trillion amidst a lot of talk regarding valuations of automakers and EV startups. Despite the talks regarding valuation, Tesla stock has had a sharp rally and is now back over the $1,000 mark.
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This article is owned by Tech Times
Written by Urian B.
