Investors Don’t Trust Musk on Tesla Shares
2022.12.23 11:39
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Investors Don’t Trust Musk on Tesla Shares
Budrigannews.com – (NASDAQ:) Tesla In volatile trading on Friday, Inc. shares touched a new two-year low as CEO Elon Musk’s assurance that he would not sell his shares for at least two years did little to reassure investors.
Since the end of last year, Musk has sold $40 billion worth of shares in the world’s most valuable automaker. Of that, $15 billion came after he made similar promises not to sell in April.
The electric car maker’s shares are on track for their worst year since going public in 2010 due to this, as well as worries about him getting distracted by his newly acquired Twitter and a slowdown in China’s economy.
The stock recovered from a drop of as much as 3.5% earlier in the session, its lowest level since September 2020, on Friday, when it was up 2%.
“Until I don’t know, probably in two years, I won’t sell stock. “Absolutely not next year, and probably not the year after that,” Musk stated on Thursday.
According to Dennis Dick, head trader and market structure analyst at Triple D Trading, “market would be confident that ‘he said it, so he’s not selling'” if this were another CEO of a Fortune 500 company making that statement.
Musk, who is well-known for frequently tweeting about his plans, most recently asked in a Twitter poll whether he should step down as CEO. In 2018, a tweet about taking Tesla private caused him to run into trouble with the authorities.
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“Musk gives off a frantic look, vowing not to sell any more stock and suggesting share buybacks. OANDA senior market analyst Edward Moya stated, “There is a lot of hesitation by retail to buy this dip because short-sellers are firmly in control.”
