Writing off Naysayers, Elon Musk Buys Shares in His Company

Published By : 08 May 2018 | Published By : QYRESEARCH

Maverick techno investor and chief executive officer of Tesla Inc., Elon Musk has recently invested in US$9.85 million worth of shares in his own company. As per the regulatory filing, Musk is already the biggest shareholder in the electric carmaker and his stake is now nearing 20 percent.

This huge purchase of shares came close on the heels of Musk’s taunt of short sellers through tweets. The short selling occurred on account of investors’ belief that the price of the company’s scrip would come down when they could buy it at a lower price – something that would enable them to make profit.

Short Interest in Company Rose by Almost 400, 000 Shares

This buying of the share was a smack on the head for those betting against his company – which hasn’t made any profit in the 15 years of its history. If anything, it has burned US$1 bn in cash in three of the four quarters just gone by.

Short interest in the stock upped by almost 400, 000 shares on the day after the earnings report, i.e. May 03. This brought the total to over 40 million shares for the first time in the history of Tesla.

Thanks to the purchase of stock, its value rose by almost 3 percent on Monday. This took the company’s capitalization to almost US$51.4 bn. This has made the carmaker surpass General Motors Co. vis-à-vis market capitalization by almost US$190 mn. While Tesla’s shares picked up on Monday, it is trading lower by 2.8% so far in 2018 and is down 5.7% from last year.

Back To Top