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Exercising options when the stock isn’t expected to go lower is a common practice among insiders. It reflects confidence or at least a neutral outlook on Tesla’s near-term valuation, especially considering the tax benefits of exercising options before a potential dip. For the average investor, this activity should not be a cause for alarm but rather an indicator of insiders' market timing strategies.
Tesla’s Demand and Inventory Movements
Tesla has recently leased a 150,000-square-foot section of a nearby warehouse, indicating a potential increase in demand or an inventory buildup. This move follows signs that Tesla might be experiencing a demand slowdown, prompting capacity adjustments.