Summary
Tesla board members and executives have sold over $100 million in stock since early February as the company’s shares decline.
Board member James Murdoch sold $13 million in stock on March 10, coinciding with Tesla’s worst single-day drop in five years.
Kimbal Musk sold $27 million in shares last month, and board chair Robyn Denholm offloaded over $75 million through a predetermined plan.
The sell-offs come as Tesla’s stock has fallen nearly 50% since December.
The wise ones sold as much stock as possible.
Tesla stock is most likely to drop way more. Global sales being down about 50% for February, demands the stock must fall even more.
Even corrupt government contracts can’t compensate for the loss of global marketshare every Musk nut was so convinced would increase to a degree where Tesla would be bigger than all other car companies combined.
The stock price was always ridiculously high, and it still is.
The P/E ratio is off the charts. Things will get really interesting after the Q1 earnings call on April 29th.
I wouldn’t be surprised if Tesla chooses to cook the books.
It will be very strange if numbers aren’t in red.
Oh man, that would be so illegal! The SEC would surely step in to investigate that, right?
Right?
…right…?
We have looked at several book covers, and everything seems fine.
They might pull an Oracle and stop reporting certain numbers and aggregate them with something else. Like when oracle stopped reporting cloud revenue as it’s own line item.
For someone who knows nothing about stocks, what is a P/E ratio?
The price the market is willing to pay for one share of stock vs the amount of profit the company is making per share.
A P/E of 90 means someone is willing to pay $90 for a share of a company that is netting $1 of profit for each outstanding share it has.
In terms of Tesla.
So, let’s be incredibly generous and say that Tesla should have a P/E ratio that’s similar to a well run auto company, like 7. For it to have that P/E ratio, its stock price should be about $14 per share, not $228. If Tesla lost 94% of its value, it would have a P/E ratio similar to a well-run car company that made good cars with an anonymous CEO that nobody hates.
But, just pretend it’s a tech company, not a car company. (Bullshit, obviously, but just pretend.) It is still overvalued by a factor of 4-5 compared to other big tech companies.
Somebody’s going to make mountains of money shorting Tesla stock. The problem is that markets can remain irrational longer than most people can remain solvent.
https://en.wikipedia.org/wiki/Price–earnings_ratio
BuT bUt BuT tHiNk AbOuT tHe MaSsIvE dIvIdEnD pOtEnTiAl WhEn ItS tEcH fUlLy MaTuReS! iT mAkEs Me FeEl LiKe I gEt To OwN sUm SpAcEx ToO!!!
Musk basically ate through the massive bump he got after Trump’s Nov 4th win.
The real pain for that stock is coming. It was already way overpriced before the election, and the speculators pumped it up even more.
Also consider that if you bought the stock mid December 2020, it’s the exact same value today!!!
That’s a return to where it was more than 4 years ago. 😋
Remember, they had a 5:1 split in Aug 2020 and a 3:1 split in Aug 2022.
If you bought in Dec 2020, your share volume tripled.
Every consumer stock ticker I’ve seen already factors those splits into the pricing scheme
Good point. I’m a moron.
Chin up, you’re both more well versed this arcanery than I.
Ah OK, I didn’t know that.