Why Does Elon Musk Keep Selling Tesla (TSLA) Stock?

  • Tesla (TSLA) stock has been slumping lately, and the shares are down another 2.5% today.
  • A prominent analyst warned that Tesla CEO Elon Musk could damage the automaker’s brand.
  • Musk unloaded roughly $3.6 billion of TSLA stock this week.
TSLA stock - Why Does Elon Musk Keep Selling Tesla (TSLA) Stock?

Source: Rokas Tenys / Shutterstock.com

After falling 10% over the last week and 16% in the last month, Tesla’s (NASDAQ:TSLA) stock declined another 2.5% in premarket trading today. However, early market trading is looking favorable for TSLA stock as it is up about 2% as of this writing.

A number of high-profile individuals have been urging Tesla CEO Elon Musk to spend less time and effort on Twitter. In late October, after a tumultuous acquisition process, Musk acquired Twitter and became the social network’s CEO.

The drop in TSLA stock today comes in the wake of news that Musk sold about $3.6 billion of TSLA stock this week.

Musk Gets Advice

Warning that Musk’s decisions and statements are hurting Tesla’s brand, Loup Ventures’ Gene Munster wrote that the CEO has “made these mistakes about running off at the mouth many times and he needs to tighten up the message.”

Munster added that Musk’s actions at Twitter will hurt Tesla in the long term if he doesn’t change his ways.

Also weighing in this week was a former member of Tesla’s board, Steven Westly, who said that Musk could get distracted by Twitter.

Positive News for Tesla and Musk

Citing estimates that the EV maker’s revenue would jump 55% in 2022, Westly stated that TSLA is “doing pretty darn well.” He added that the automaker is “going to be looking at a good 2023.”

And Goldman Sachs yesterday kept a “buy” rating on TSLA, citing its upbeat outlook. However, the firm cut its price target on the name to $225 from $305.

Meanwhile, Musk reported earlier this month that Apple (NASDAQ:AAPL) had “fully resumed” advertising on Twitter.

TSLA Stock Going Forward

The owners of TSLA stock should monitor the extent to which other Tesla insiders, hedge funds, and institutional investors unload and buy the automaker’s shares. Also, of course, they should monitor all news about the company’s deliveries, financial data, and the performance of its EVs.

On the date of publication, Larry Ramer did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Larry Ramer has conducted research and written articles on U.S. stocks for 15 years. He has been employed by The Fly and Israel’s largest business newspaper, Globes. Larry began writing columns for InvestorPlace in 2015. Among his highly successful, contrarian picks have been PLUG, XOM and solar stocks. You can reach him on Stocktwits at @larryramer.

Article printed from InvestorPlace Media, https://investorplace.com/2022/12/why-does-elon-musk-keep-selling-tesla-tsla-stock/.

©2023 InvestorPlace Media, LLC