Key Points
Tesla CFO Vaibhav Taneja sold 3,000 shares for $1.3 million to cover taxes from stock options, retaining about 130,000 shares.
Tesla shares fell 2%, following a 4.7% drop Friday, amid broader market declines.
Expectations for Full Self Driving approval in China have driven Tesla’s recent rally; 1.3 million subscribers pay $99 monthly.
Tesla stock fell 2.14% to $413.21 on Monday, after CFO Vaibhav Tanejasold some stockfor tax purposes.
Stocks fell as the odds of the Federal Reserve raising interest rates to quell inflation rose. Investors have been hoping that lower interest rates would accelerate economic growth.
That’s an issue for the entire market. For Tesla, Taneja recently disclosed a sale of 3,000 shares.
Investors like to track insider sales, hoping to get a read on the company’s future from those closest to it. The CFO sale doesn’t appear to contain much information, however. It was made to cover taxes from stock options, according to the filing. Taneja still controls about 130,000 Tesla shares, including indirect holdings, according to the filing.
Taneja raised about $1.3 million. The sale was particularly well timed. His price was $450, near last week’s highs.
The past few days have been wild for Tesla shares. The stock briefly traded above $450 and was looking to extend its third consecutive weekly gain. Then came Friday. Shares dropped 4.7% amid a broad market selloff, leaving them down 1.4% for the week.
Still, shares have been consistently above $400 for a few days, a level they haven’t held consistently since early March. Expectations for approval to sell Full Self Driving in China appear to have catalyzed the recent rally.
Tesla’s FSD can do most of the driving most of the time. Americans pay $99 a month, and Tesla has amassed 1.3 million subscribers.
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