Why Tesla stock perked up today

Elon Musk says he's done selling shares for now.

| More on:
tesla vehicles being charged at a charging station

Image source: Tesla

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

What happened

Tesla (NASDAQ: TSLA) stock has been on a downslide as CEO Elon Musk slowly worked on unloading the 10% of his shares he publicly said he was aiming for. The stock is down 13.5% over the past month. But shares perked back up Wednesday morning after Musk said in an interview that he has sold all that he intends to for now. As of 10:25 a.m. ET, Tesla shares were up 4.6%. 

So what

Musk was on The Babylon Bee podcast last night where the normally satirical site shifted its format for a straightforward interview. Musk talked about his stock sales, taxes, and why he moved Tesla's headquarters from California to Texas earlier this month. Musk has now sold 13.5 million Tesla shares, and says he's close enough to his goal to sell what he needed to pay his hefty tax bill. Musk had said last weekend that he would be paying $11 billion in taxes this year. 

Tesla stock today is likely reacting some to the fact that in the course of selling shares to cover his tax bill, Musk also exercised options to buy about 16.4 million more shares. That leaves him with more shares than when he initially discussed selling 10% of his holdings, according to data compiled by MarketWatch. 

Now what

Musk also discussed moving the company's headquarters to Texas, slamming California in the process. That move to Tesla's Austin gigafactory became official on Dec. 1. He said, "The state of California is doing everything it can to encourage people to leave," calling the state "the land of overregulation, over-litigation, [and] overtaxation."  

While Musk may have been entertaining in the interview, it's his actions that investors are most focused on. And now that he has sold all the shares he intends to for now, investors are giving Tesla stock a bump up today. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Howard Smith has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on International Stock News

asx share price boosted by us investment represented by hand waving US flag across winning athlete
International Stock News

Star-spangled returns: iShares S&P 500 AUD ETF soars 35% in 2024

US shares delivered a remarkable performance with the IVV ETF providing triple the returns of the ASX 200.

Read more »

Man looking at digital holograms of graphs, charts, and data.
International Stock News

Why Alphabet's 'challenging' 2025 may benefit the stock as it pushes AI innovation

Alphabet employees have been told to be ready for an important -- and challenging -- year ahead.

Read more »

A businessman holds a bolt of energy in both hands, indicating a share price rise in ASX energy companies
International Stock News

Microsoft CEO Satya Nadella just said something that could be terrible news for Nvidia but great news for this commodity stock in 2025

The winners and losers in the artificial intelligence market could change rapidly in this fast-evolving space.

Read more »

a woman holds out an electric vehicle charger with a satisfied look on her face behind cool sunglasses.
International Stock News

Why Tesla stock dropped to start the New Year

Investors are driving the Tesla share price down at the start of 2025. But why?

Read more »

woman watching Netflix and flicking the channel
International Stock News

Should you buy Netflix stock before January 6?

2024 was a milestone year for Netflix, hallmarked by the company's foray into live sporting events.

Read more »

A head shot of legendary investor Warren Buffett speaking into a microphone at an event.
International Stock News

Prediction: Warren Buffett's Berkshire Hathaway stock will outperform the S&P 500 in 2025

The legendary investor has a proven track record.

Read more »

Five young people sit in a row having fun and interacting with their mobile phones.
International Stock News

Should investors unfriend Meta Platforms stock in 2025?

Investors may want to consider whether they want to foster a friendship with Meta. Or is now is the time…

Read more »

A panel of four judges hold up cards all showing the perfect score of ten out of ten
International Stock News

Top 10 US shares that Aussie investors bought most in 2024

US shares had a magnificent year...

Read more »