Of all the insiders we could cover here, Elon Musk at Tesla Inc. (NASDAQ:TSLA) is probably the highest profile right now, given the incredible stock price appreciation investors have seen in early 2020 and late 2019. Mr. Musk promised the “short burn of the century.” And any investors who did go short Tesla saw massive losses over this time-frame, with a good portion of the company’s rapid stock price increase in early 2020 likely related to short sellers covering their positions.
Throughout the ride, Elon Musk has been vocal about buying shares of his company, with his stock portfolio essentially amounting to most, if not all, of his wealth (he has borrowed against his holiday overtime). Musk announced a new equity issuance in mid-February, likely to take advantage of the current astronomical valuation the market is providing Tesla, saying he will purchase $10 million worth of Tesla shares at this equity issuance. The issuance is expected to raise $2.3 billion in capital.
As with any investments, make sure to consult a financial advisor before making any investment decisions, and do your research before investing your hard-earned money into any company. Investors should never make an investment decision on insider trading activity alone, but rather should consider all fundamental long-term drivers of the business and its historical performance before making such decisions.
Insider buying or selling is not necessarily indicative of anything. Insiders make transactions all the time for purposes completely unrelated to the performance of the company.
Invest wisely, my friends.
