Part 3/10:
- Legal or regulatory reasons: In rare cases, fines or government mandates could necessitate sales, which again are not inherently negative.
The author stresses that outside these rational explanations, Elon Musk’s stock sales generally cast a short-term bearish shadow on Tesla. They argue that institutional investors and sophisticated market participants are likely to interpret Musk's selling as a negative signal, potentially impacting Tesla's stock price.