Why Tesla Stock Perked Up Today

Elon Musk says he’s finished promoting shares for now.

Howard Smith

Key Points

  • Musk did a wide-ranging interview the day before this day, through which he talked about his Tesla stock, taxes, and transferring the firm headquarters to Texas.

What came about

Tesla (NASDAQ:TSLA) stock has been on a downslide as CEO Elon Musk slowly labored on unloading the 10% of his shares he publicly stated he used to be aiming for. The stock is down 13.5% over the final month. But shares perked aid up Wednesday morning after Musk stated in an interview that he has bought all that he intends to for now. As of 10: 25 a.m. ET, Tesla shares had been up 4.6%. 

So what

Musk used to be on The Babylon Bee podcast final evening the place the in overall satirical pronounce shifted its layout for a straightforward interview. Musk talked about his stock sales, taxes, and why he moved Tesla’s headquarters from California to Texas earlier this month. Musk has now bought 13.5 million Tesla shares, and says he’s terminate enough to his purpose to promote what he the essential to pay his hefty tax invoice. Musk had stated final weekend that he would be paying $11 billion in taxes this yr. 

group of Tesla cars parked in lot overlooking mountains.

Image supply: Tesla.

Tesla stock this day is in all probability reacting some to the reality that each one through promoting shares to duvet his tax invoice, Musk furthermore exercised alternatives to preserve about 16.4 million extra shares. That leaves him with extra shares than when he at the origin mentioned promoting 10% of his holdings, in line with info compiled by MarketWatch. 

Now what

Musk furthermore mentioned transferring the firm’s headquarters to Texas, slamming California in the technique. That transfer to Tesla’s Austin gigafactory grew to alter into legit on Dec. 1. He stated, “The pronounce of California is doing every little thing it will in all probability to relieve of us to recede,” calling the pronounce “the land of overregulation, over-litigation, [and] overtaxation.”  

While Musk might maybe maybe well have been spirited in the interview, it be his actions that traders are most centered on. And now that he has bought all of the shares he intends to for now, traders are giving Tesla stock a bump up this day. 

This article represents the conception of the author, who might maybe maybe well disagree with the “legit” advice intention of a Motley Idiot top rate advisory carrier. We’re motley! Questioning an investing thesis — even one in every of our hang — helps us all assume critically about investing and create decisions that relieve us change into smarter, happier, and richer.

Howard Smith has no position in any of the stocks mentioned. The Motley Fool owns and recommends Tesla. The Motley Fool has a disclosure policy.”>

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