This week Elon Musk sold $5.7 billion of Tesla shares.
Yeah, yeah he had taxes to pay. But if he thought the price was going to rise further, he'd have taken a loan out to pay those taxes and arranged repayment over time out of salary.
He's selling because he thinks the rise in the share price over the last six months is unsustainable. Here is the graph of what has happened to the Tesla share price this year:
It's always a red flag when the founder sells this much (about 10% of his holding). Yes he's tried to wrap it up in a story about realising gains and paying taxes on those gains like a good citizen (since when has Elon been a good citizen?!). And the twitter poll was a nice touch too.
But strip away the fluff and this is a sell signal. The founder thinks his business is way over-valued and is cashing out.
Posted Using LeoFinance Beta