On Thursday, TESLA shares advanced in premarket trading after Chief Executive Officer Elon Musk had sold about $5 billion of the stock.
This came after Elon Musk’s Twitter poll where he asked his followers whether or not he should sell up to 10% of his share in the company. Following this, the stock plunged by 16% on Monday and Tuesday, dropping Musk’s net worth from $338 billion to $288 billion, according to calculations made by Bloomberg.
The stock made back some lost ground on Wednesday and further rebounded when news went out that Musk had only sold 5%, not 10% of his Tesla shares. As of Wednesday night, Tesla shares were trading at $1,100 each.
However, the Tesla shares had advanced in premarket trading by Thursday following the widespread news that Musk had sold close to $5 billion of the stock. The company’s shares rose 2.7%, recouping some quite heavy losses which it faced this past week.
This recent share sale was Musk’s first share sale since 2016, and was hot on the heels of that fateful Twitter poll where he asked if he should offload 10% of his stake in Tesla, which makes up most of his $281 billion fortune.
Some accused Musk of being eccentric with financial matters, bringing up his many controversial tweets about cryptocurrency coins like DOGE, SHIBA INU, etc. When studying this recent pattern of events, it would indeed seem that Musk acted rashly and handled matters as heavy as Tesla stock (and his net worth) with levity. However, AJ Bell analyst Danni Hewson is convinced that Musk is not so rash.
Hewson stated that people should not think that Elon Musk’s ‘madness’ has no pattern or plan, because there is truly a method to his madness. Hewson asserts that his decisions are not made on a whim, or on the instruction of his Twitter followers. Rather, Hewson states that his decisions have already been made and what he does is nothing short of playing around with the general public.