Elon Musk said Tesla’s share price might be too high, and the stock fell sharply. Susan Walsh/Associated Press Tesla’s chief executive, Elon Musk, said on Twitter on Friday that the company’s stock price, which had been surging in recent weeks, was “too high” in his opinion. The stock fell sharply after the post, and closed 10.3 percent down.
How much Tesla stock does Elon own?
The funding required for the acquisition will entail $12.5 Billion in loans against Tesla Stock, totalling $25 Billion in committed debt and $21 Billion in equity. While the intent from Elon Musk is to revive the social media platform, Tesla shareholders ...
Why is Elon Musk selling Tesla stock?
Elon Musk’s proposed all-cash offer to buy Twitter Inc ... head of TMT research at Mirabaud Equity Research. “He will have to sell a decent piece of Tesla stock to fund it, or a massive loan against it.” But even for the wealthiest person in the ...
Why everyone should sell Tesla stock now?
Tesla also recently entered the bitcoin mining space. In a recent U.S. Securities and Exchange Commission (SEC) filing, Tesla Inc. reiterated its pro-Bitcoin position stating that bitcoin has “long-term potential” and is “a liquid alternative to cash.”
How much did Elon sell?
Tesla and SpaceX CEO Elon Musk has sold another 934,090 shares, or about $1.02 billion worth of his holdings, in his electric car and solar business according to financial filings published late Tuesday.
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Why is the price of Tesla stock so high?
Higher rates hurt richly valued growth stocks such as Tesla more than others because the bulk of those companies' profits are expected to roll in years from now. When rates rise, the discounted current value of those future earnings falls. The move seems to be a carry-over from events earlier in the week.
When did Elon say Tesla stock was too high?
In May 2020, Musk tweeted that “Tesla's stock price is too high imo.” That day Tesla's stock price closed 10 percent lower than the day before. The SEC said the tweet was subject to review since it addressed the company's financial condition.
Is Tesla an overpriced stock?
We Looked at the Math. Tesla's market capitalization recently moved well past $1 trillion, but the independent investment-research firm New Constructs believes the company is overvalued by roughly $1 trillion of that.
Is Elon Musk overvalued?
Twitter should accept Elon Musk's $43 billion bid because its stock is overvalued, Michael Nathanson said. "It's the best outcome for the shareholders who've been buried in the stock for a long time," he told CNBC Monday. Twitter stock could plunge 37% to around $30 a share if Musk walks away, the media analyst added.
Why is Elon stock dropping?
DETROIT -- Shares of Tesla and Twitter have tumbled this week as investors deal with the fallout and potential legal issues surrounding Tesla CEO Elon Musk and his $44 billion bid to buy the social media platform.
How much did Tesla stock drop after tweet?
12.2%One day after Twitter announced it had accepted Musk's $44 billion takeover bid, Tesla shares sank 12.2%, wiping out more than $125 billion off the electric vehicle maker's market value. The falls come as Wall Street fretted about how the deal could impact the electric vehicle maker and its stock price.
Is Tesla in trouble financially?
New York (CNN Business) Tesla faces billions of dollars in losses from its new plants, supply chain problems and Covid lockdowns — enough for CEO Elon Musk to mention the possibility of bankruptcy in a recent interview.
Is investing in Tesla a good idea?
Key Points The EV maker's shares are down more than 30% year to date. Thanks to the company's soaring earnings, its price-to-earnings ratio has fallen even more than its stock price. It's navigating supply-chain challenges extremely well.
Is Tesla a good investment for 2022?
Tesla stock has had a tough 2022, but now UBS has upgraded shares to Buy from Neutral while keeping its price target unchanged at $1,100.
What Tesla would have to earn to justify its stock price?
At a lofty PE of 25, Tesla would need to achieve net profits of $51 billion a year. Getting from our $4.6 billion to $51 billion would demand profit growth of 41% a year. Today, the only U.S. companies earning in the $50 billion range and over are Apple, Microsoft, Alphabet, Berkshire Hathaway, and JPMorgan Chase.
Is Tesla stock a bubble?
To some, the shares of Elon Musk's company are insanely overpriced, a bubble that could pop at any time and blow up a portfolio. To others, Tesla is a technology pioneer that skeptics are massively underestimating and whose shares are still the buy of a lifetime.
What is the true value of Tesla stock?
For Tesla, our intrinsic value model estimates a value of the company at US$ 473b, or $457 per share. This puts the current stock price about 96% above intrinsic value. The link above will take you to our valuation model for Tesla.
Does Elon think Tesla is overvalued?
The CEO has often commented on Tesla's stock price, but surprisingly, it was often to say that the price was too high. In 2020, when Tesla's stock was reaching new high, Musk told his millions of followers on Twitters that he believed the stock was “too high”.
What does Elon Musk say about Tesla stock?
After Tesla went public in 2010, Elon Musk often said that he would be the “last one to sell Tesla stocks.” The CEO periodically had to do it to cover his taxes after receiving large stock compensations.
What was Tesla stock split?
3-for-1The company announced Friday that its board approved a 3-for-1 stock split, its first split since August 2020. The split would need to be approved by shareholders at the company's annual meeting in August. Tesla (TSLA) closed Friday at a little over $696 per share.
How much is a Tesla Cybertruck?
The base for the Cybertruck that starts at $39,900. The Dual Motor all-wheel drive version that starts at $49,900. The Tri Motor all-wheel-drive Cybertruck costs $69,900.
What was Tesla's stock price before Musk tweeted?
The company just days before reported a strong quarter, sending shares higher. Tesla stock was trading at 760.23 just before Musk tweeted and then fell to a session low of 717.64, before falling even more.
What did Elon Musk say about Tesla?
Musk also said he was “selling almost all physical possessions” and to give people back their freedom, presumably referring to shelter-in-place orders. He later shared lyrics to the Star Spangled Banner with his followers. House. Freedom.
Why did Tesla drop?
Shares of Tesla dropped Friday after CEO Elon Musk tweeted that the company’s shares are priced “too high.”
Is Elon Musk outspoken?
Musk has been outspoken about the corona virus pandemic, telling investors on the company’s Wednesday earnings call that shelter-in-place orders are “ forcibly imprisoning people in their homes against all their constitutional rights.”. Tesla did not respond to multiple requests for comment. --Lora Kolodny contributed to this report.
Did Tesla settle shareholder lawsuit?
In January, all board directors of Tesla besides Elon Musk settled a shareholder lawsuit over the company ’s $2.6 billion acquisition of SolarCity in 2016. They paid $60 million for their part of the settlement.
Is Tesla suing Musk?
Tesla is in the midst of defending itself in a significant volume of shareholder and other lawsuits. A federal judge decided in early April that Tesla and Musk have to face suit over his infamous $420 tweets.
Does Tesla respond to multiple requests for comment?
Tesla did not respond to multiple requests for comment.
