Shares in Tesla, the American electric car maker, have posted a total annual gain of 37% through early November. The share then reached its record high on 04.11. at $1240. The stock then fell nearly 25% so far after initially respecting the resistance level at around $1000, but then breaking it. Currently, the share price stands at $960.
The main reason for the recent correction of Tesla was the information that CEO Elon Musk has sold shares of his company.
A few weeks ago, the Tesla CEO had already let Twitter users vote on whether he should divest himself of ten percent of his Tesla stake in order to pay more taxes. That equates to about 17 million Tesla shares. Then, in early November, he began selling shares, after which Tesla stock was already under pressure at the time.
Now the entrepreneur sold a little more than 934,000 securities for $906 million. This was revealed in mandatory notifications to the US Securities and Exchange Commission on Tuesday night. With that, Musk has already sold a total of nearly 12 million Tesla shares worth just over $12.7 billion.
It remains to be seen whether the share price will recover soon after the sharp sell-off. Moreover, it is not only the current generally weak market situation and the recent correction in the indices that are influencing investors’ buying decisions. The fact that the automaker is facing increasing competition from Asia and Europe despite its ever-growing market share of electric cars will also have an impact on its long-term share price.
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