Tesla Shares Rally as Musk Stock Sales “Almost Done”
Yesterday, Tesla CEO Elon Musk revealed that, he was “almost done” with his Tesla stock sales, subject to the completion of a prearranged sales plan relating to his stock options.
Musk had previously sparked a Tesla sell-off last month, when he posted a poll on Twitter asking his followers whether they thought he should sell 10% of his shares in the company. The poll closed with 58% of voters supporting the proposed sale and Tesla shares subsequently dropped more than 16% over the next two sessions.
Prior to Musk’s poll, Tesla stock had rewarded investors with a remarkable run, which saw share price increase 54% in just one month. However, since the poll, the share price has followed a downward trend, closing at a two-month low of just under $900 on Monday.
Nevertheless, yesterday, in response to Musk’s announcement, Tesla shares soared 7.5%, leading a second day of gains on Wall Street, as the S&P 500 closed 1.02% higher.
Tuesday’s rally saw Tesla’s market capitalisation cross the $1 trillion mark, as it closed the session at $1,008.87 a share.
But despite its strong day, Tesla's share price remains more than 13% lower than it had been before Musk’s now infamous Twitter poll. Investors will be hoping that, with the end of Musk’s share sale in sight, Tesla will be able to reverse its recent downward trend and finish the year on a high.
Tesla Share Price Evolution:
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