Tesla stockholders start the new year trying to diversion the shadow of the past year 2022, with almost $670 billion of value blotted out. At the core of this in a very material sense, Elon Musk technologist and largest investor, Tesla Inc.`s chief controlling.
Nevertheless, 14 months ago, Musk began massive selling on tesla in November 2021. Discuss about decreased demand in china and conversely hopes that the defeat is over, especially since tesla missed delivery projection for the fourth quarter. However, this should inspire stockholders to survey the volume and pattern of Musk`s sales.
At the end of 2021, Musk sold shares in four partitions, April and August 2022 at the end of the same year. In a very extensive sense, he realizes in some shares were right at the top but then continued to sell as the cost fell dramatically in 2022. Hence that is the pattern Musk realized the price was down, selling more and more even as it fell.
During 2022, through 1,279 open market transactions spread across 27 trading days, Musk disposed of almost 75 million shares. Gross revenue was $39.4 billion. By looking at the cumulative build-up of proceeds and shares sold, a declining return becomes apparent. on the other side, Musk has disposed of 29% of modified shares in the past two months. Afterward, Musk began his takeover offer for Twitter inc and rotated as it appeared he would go with it.
Before November 2022, only a single transaction implicated more than 1.4 million shares. On November 8, almost 3 million shares were just in one sale of nine. On December 13, musk disposed of nearly 12 million shares more than 8% of all sold in the last 14 months but producing less than 5% of the profits. Musk’s average comprehended price over the entire period is $279 which is more than double the current cost, in spite of the year-end fire sale.
With a reduced net worth just of $129 billion musk no longer holds the crown of the wealthiest person in the world. However such setbacks can be manageable with enough fortitude.
Instead of a slump in valuation, tesla still trades at almost a 35% premium to the S&P 500 on the forward cost-to-earning ratio. During this period, tesla creates 34,423 more cars than it imports to customers during that time. The dispute lines up with Musk`s sales. According to Musk, he did not have any other sales designed at various points last year. He also said that the falling stock cost was a “purchasing opportunity”. he also declared that tesla is worth more than $4 trillion and business was examining a buyback program.
Musk said on Twitter space that he would “definitely not” sell any more stock in 2023, and all of us in a better way know that if it is on Twitter it must be right.