Elon Musk is selling Tesla stock.
Elon musk is selling tesla stock yes it is true uh we just got documents here on exactly what what elon musk is doing with tesla stock and so i thought in this video i’m going to show you exactly what’s going on here exactly how many shares elon musk is selling here i want to give my perspective of somebody that’s held this stock for a long long time now you know
Like like everybody’s wondering like is elon gonna sell more shares do i think he’s going to sell more shares if he does what does that do for the stock price does this change anything knowing that elon musk is selling shares now or has sold shares does this do anything for tesla stock price moving forward a lot of people are speculating that this is going to help
Tesla go up now some people are speculating that it’s going to help tesla go down now i want to give my perspective on that as well okay so i hope you guys enjoy this as always make sure you check out hungrybull they’ll be ping comment down there to sign up for email newsletter it’s absolutely free if you didn’t know there’s a twitter debacle going on i call it
A debacle it’s a situation elon musk is basically wants to buy the company and it’s been approved by twitter’s board and it’s it’s a huge deal essentially okay i mean this is like a 44 billion dollar deal roughly and uh twitter’s supposed to be bought out at 54 that’s why this stock price has gone up so much recently because of basically elon musk buying the
Stake and then the announcement coming out that he wants to buy this this company essentially okay now this was a 38 premium over what the stock price was at we’ll see what ends up happening with this deal over time it has to still get approved by obviously the government and you know elon says the financing’s all lined up and everything’s good to go as far as
That goes but the deal still has to go through it i think it’s important to understand although the sides have agreed it still has to go through and i’ve seen deals fail before i’ve seen a lot of deals fail before where you know it’s agreed upon between the different sides and then it ends up getting shut down like the financing doesn’t happen or the government
Shuts it down for some reason so you know you never know what could happen in these situations so you know don’t think like this is a for sure done deal just because elon’s agreed and that the twitter boards agreed in this whole situation okay but nonetheless this is a huge distraction obviously and you know some people are for this and that’s usually for social
Causes i don’t think anybody’s if you’re if you care about tesla stock you care about tesla the company i don’t think you’re necessarily for this and the reason being is at the end of the day um you know it’s a distraction it’s a distraction for elon it’s a distraction for uh you know a lot of various things right and it’s obviously causing problems with tesla
Stock now let’s look at the document here that has been filed so essentially this is through the scc and what we’re going to find here is elon musk um sold a massive quantity of shares on the 26 okay so a couple days ago 109 000 shares there 84 000 86 000 65 000 30 000 i mean look at these blocks of shares just sold sold so absolutely incredible numbers right
And i mean tesla’s a very high price stock so when you see something like 26 000 shares are disposed of it’s it’s insane now um as far as pricing goes for for these shares it looks like pretty much all them were in the 900s you know anywhere from like 933 on the high end to around 904 on the low end and you know all these were for 100 something million dollars it
Essentially looks like here so pretty pretty big numbers and um just sold sold sold and that’s all that’s a lot of shares and uh you know all total that adds up to several billion dollars worth of tesla shares elon musk sold okay which is a massive massive number and you know elon owns a massive you know he’s basically he’s owned a little over 20 of the entire
Tesla company essentially okay so that number is gonna be less now when you sell four billion dollars worth of shares it’s going to be less now we also don’t know if he sold on the 27th and 28th we’ll have to wait for that we’ll see what happens there but he definitely sold several billion dollars there on the 26th okay and what’s very interesting about this is
If you go back essentially and you look at what happened on the 26 tesla stock i don’t say crashed but the baby fell off a cliff so basically the day before elon started selling the stock was over a thousand dollars a share and then you know elon just dumps those shares on the market and that stock just tanks i mean absolutely tanks and so this is obviously a
Situation here where elon putting that much selling pressure on this stock like it just couldn’t there’s no there’s no hope you know when when there’s that much when there’s you’re talking about billions and billions of dollars of shares being dumped on the market all at the same time you know there’s just no um there’s not enough buyers especially in this sort
Of market right now you gotta understand this is the sort of market right now that people are very timid to buy stocks right now and i think that’s very apparent to everybody that pays attention to the market and pays attention to what’s going on right and so if you have elon musk out there and sell four billion dollars worth of shares in a day it’s gonna tank
Tesla stock there’s just not enough buyers to to put the buying pressure up on the other side and of course there’s going to be other people that always want to sell tesla stock in a given day and so for buyers to come in essentially you need the stock price to go much much lower and so that’s that’s how essentially you get that stock to sell off of that dang
Hard in a given day is you know you don’t you put that sort of selling pressure on this the buying pressure on the other side is just not strong enough to boost our stock price up and so you have to keep kind of bidding you know asking down and asking down for the shares okay now in terms of tesla stock you know here’s kind of the ugly part it’s it’s down another
2.6 after hours now a lot of folks thought you know with this news coming out maybe it would boost up tesla stock but so far at least it’s not looking that way we’ll see obviously what happens um but it so far it does not look like that right now the important question folks are asking is you know with this elon musk situation is is he going to sell more shares
Another 4 billion another 4 billion and especially for people that get a little more caught up in the short term stuff they’re like is he going to sell more shares and what he says is no further tesla sales planned after today now the interesting part of that is um and he posted this on us you know this response on twitter a few hours ago he said no further tesla
Sales planned after today so the first thing is thought i was like okay after today so does that mean he was selling shares in the market on the 28th and also is he referring to today as being tomorrow really right um you know i i sometimes think you know like when it’s night time i’m already talking about the next day as like uh you know today essentially right
And so i the a little bit of confusion there and i actually saw i wasn’t the only one confused uh i gotta give props to to mr kevin there um he he said after today’s filing or after 428 3.1 million shares were all from 426 so yeah i mean i yeah i’m a little confused as well of of like when um you know like like is it what day are we talking here did he did he
Mean the 26th the 27th the 28th the 29th like that that’s what i’m a little confused of so we’ll see what happens with that um but obviously if there’s a if if he does drop a bunch more money you know another few billion it’s going to put more selling pressure on tesla and there’s just there’s no way that stock can um recover at least in that given day there’s
Just not that sort of buying pressure out there in the market right now right no uh you know i want to give my opinion in here in just a moment but i want to kind of read you guys through some other folks opinion because i thought some of these opinions were you know interesting so this person here says sweet better than having you over leverage so essentially
With this twitter situation is when they were talking about him you know leveraging against this tesla stock to buy out twitter a lot of people were concerned and i think for good reason they should be concerned that if tesla stock was to go down to certain prices like you know if tesla stock went through a big fall essentially that elon could have to be forced
Kind of like a margin call where you have to sell tesla stock which would dumb more selling pressure on let’s say tesla stock in a given time period so let’s say tesla went through a really tough time and stocks 400 a share right well if elon’s over leveraged in that situation he could be technically forced to sell tesla stock in a time period where tesla stocks
Already getting killed it would add insult to injury essentially the stock price and it would get much uglier much faster and so just as in an individual you don’t want to get over leverage in the market right even if you’re the world’s richest man you don’t want to get over leveraged because you could end up in a situation where you know um if if things don’t
Quite go your way which we know in in the stock market you stock markets crazy man you know i tesla could be down 70 in the next 18 months like i wouldn’t be surprised it could be up 70 in the next 18 months i wouldn’t be surprised like the stock market anything can happen and i think in a year like this we’re learning that more than any time right where you’re
Seeing countless stocks just go down 60 70 80 percent um and you’re seeing even a lot of big dog stocks that that are just gotten absolutely decimated right and so to imagine tesla like falls big is isn’t at least to me it’s not all the realm of possibility and so if elon was over leveraged i could get really really ugly really really fast okay no i thought this
Was an interesting comment it says um you know right here selling tesla to buy twitter absolutely hate it sounds like something new kathy wood would do wish you the best putting the dumpster fire out this is a capital component still uh leveraged attached to it and i definitely have heard some folks uh you know basically saying how could you sell tesla stock to
Basically put that money on twitter because that’s essentially what is going on elon musk sells you know several billion dollars worth of tesla stock right that money is going to fund this this twitter acquisition right and so i can definitely understand folks looking at that and be like like what you’d rather put your money there and it doesn’t give the best vote
Of confidence for tesla because elon musk is a businessman at the end of the day and i know he has you know always missions and all those sorts of things but he’s a businessman if you’ve tracked elon musk for the last 20 years you know the dude’s a businessman okay and so you know some people look at this and like you would rather have these billions of dollars
In twitter than tesla and it doesn’t give the best vote of confidence to test the shareholders right it almost looks like wow you you bailing on us do you think we’re going to go down things like that right and obviously elon musk was one of the first on the recession train i think it was december he tweeted out that he expects a recession to come um you know this
Summer or at the at the latest 2023 he said okay this is an interesting tweet i saw i said you promised your money will go out uh of tesla after everyone else i’m disappointed this is an old tweet from 2013 somebody pulled up here and you know basically said at this tesla shareholder meeting that just as uh you know my money was the first in it’ll be the last out
He said you know you know i have tweets from like nine years ago so i i don’t know i just thought it was interesting this one says thanks for the reassurance but why didn’t you borrow against your stock instead of selling shares he could still be doing that you remember this is a massive acquisition so i think that’s important to understand but there’s definitely
A lot of folks that are looking at and they’re like why even sell any stock but then once again you kind of get into the leverage situation do you get over leveraged right now i definitely have some concerns about all this that i want to personally share right and part of it is things like this you know this person says 4 26 is a day we had a bloody 12 percent
Drop even though i try to convince myself this is uh you know this is understandable but for some reason my heart hurts and um here’s the thing okay and you know once again i’ve been uh you know in the stock since 2018 is when i first started buying my first tesla shares okay and uh bought obviously a lot of shares in 2019 and so it frustrates me to see a lot
Of different things going on you know elon’s selling the share here’s here’s the thing with the elon situation right first he sold the shares for tax reasons okay you know whatever um but then now he’s selling these shares to put the money in twitter and um you know twitter of all companies that’s a tough that’s a tough part it’s like twitter like seriously if you
Know if it was something else i don’t know square i give them a pass you know paypal hey maybe he wants to buy paypal back this talks a lot cheaper it’s this whole company right um you know companies like that they you really see like they got great futures in front of themselves they they have growth they get game changers you can almost give them a pass for some
Of those but like twitter like twitter like come on man but the the most concerning thing for me is not really elon musk it’s actually the people that that that gal there who get hurt by by tesla stock going down and and i look at this talk and it’s a very false assumption with tesla stock and the false assumption with tesla stock is not that the stock’s going to
Go up because that’s why most people buy it they think tesla’s going to go up and become a two trillion dollar company a five trillion dollar company a 10 trillion dollar company and things like that fair whatever the thing that bothers me is how safe people think tesla stock is and i i can tell you tesla’s not the safest company in the world it’s held up really
Well because they had a massive back order of orders and people with a lot of money have done really really well and so tesla orders kind of went crazy right and so tesla’s now backfilling all those orders but what people don’t understand is that tesla’s one of those stocks that could fall 60 70 percent um if if the numbers just start not coming in interest rates
Keep going up and the orders just aren’t there you know because the economy is not in the best place like tesla is going to be hurt in that situation their stock price is going to fall dramatically and it will be very very dramatic and you gotta understand when you’re like you know they’re not now they’re not a trillion dollar company they’re under but when you’re
A trillion dollar company for tesla to follow 300 billion or 400 billion this is not the craziest thing in the world to even imagine um especially for anybody that knows anything about valuations and stocks and things like that and so it bothers me to see how many people are in tesla stock that don’t understand the risks of tesla stock and that that’s kind of the
Frustrating part for me because you know obviously tesla’s an exciting company and eevee game changer and all those sorts of things but i don’t think a lot of people really understand the risk that comes with tesla stock and they see one of those bad days and they don’t understand that tesla could go through a 6 12 18 month span where the stock goes down like it is
Not the craziest stuff to imagine and in in for a lot of us that are really in the market like really really in the market we understand that and we we get it right but for a lot of folks that that are in tesla stock i don’t think these folks really pay attention to the market like that and i don’t think they understand the risk they could be necessarily taking in
This and they’re just kind of like ah you know no it went down 12 oh my gosh and then i realized dude that could be 12 plus 12 plus 12 plus 12 percent and um you know that’s that’s the way the market i i i don’t care what stock it is i’ve seen everything fall 50 60 percent every great stock you you possibly respect in today’s market all the big techs i’ve seen all
Those stocks fall 40 50 60 it’s all it’s happened to all them all of them not one of them has made it through and not had some dramatic big falls every single one of them google apple microsoft amazon tesla nvidia amd like if you go down the whole list paypal facebook you go down the whole list and you’ll find nothing but a bunch of companies that went through
Several different time periods where the stocks fell 30 40 50 60 70 and it’s happened to tesla a million times in the past and it could easily happen again if we go into a recession or something like that and so that’s the most bothersome thing for me and so for all you guys out there i hope you understand always the risk you’re taking in any stock and that that
No stock comes risk-free including tesla’s talk and i think that’s the most important part to understand and with the elon musk situation who knows what’s going to happen with that it’s a messy deal it’s a distraction it’s frustrating i think it’s a tesla shareholder um and that will be what that’s going to be twitter i don’t even get like i’ve never liked twitter
Personally so maybe i have a little agenda against it like i’ve never understood that whole thing like who cares like just come up with a better uh come up with a better service you don’t like twitter just create something better man you know twitter is going to be what twitter is going to be and then if you try to change it to something else let the other people
Are just going to be frustrated and a lot of people like it doesn’t matter what elon does with twitter like i don’t care like it’s not like i got to get on twitter so um i’m sure that’s how a lot of other folks feel right and even the last president he even said he was he was huge on twitter he even said if elon buys it you know i’m still not going back on that
Thing and so like i like i think a lot of us are just kind of baffled by this whole situation then you see elon selling billions of dollars a tesla stock and it’s like dude like what what are we doing here man for twitter of all the companies of all the companies that are so cheap like are you kidding me and with the type of money elon musk has it does he i i
Mean the type of social network he could build um with the type of money he has and the type of team he could put together you know but anyways that’s just my situation so anyways guys much love is always hope you enjoy this and have a great day
Transcribed from video
Elon Musk is Selling Tesla Stock. Know This! By Financial Education
