IT House reported on January 29 that Robyn Denholm, chairman of the board of directors of Tesla Inc., and Andrew Baglino, an important deputy of CEO Elon Musk, formulated a **trading plan at the end of last year, allowing them to make **large sums** in the coming months.
Image source pixabay According to regulatory filings, Denholm made an internal trading plan in October last year for up to **281,116** shares**, which are worth about $51.5 million at Tesla's latest ** price. In November, Baglino set up a trading schedule for up to 115,500 shares, valued at approximately $21.2 million. Denholm's plan expires on Aug. 16, while Baglino's expires on Dec. 31.
The Securities and Exchange Commission allows company directors and officers to arrange transactions through predetermined plans that stipulate conditions including the number of transactions and the date of the transaction. Insider stock sales could put more pressure on Tesla, whose market capitalization has evaporated more than $207 billion this year due to slowing growth in electric vehicle sales (IT House note: about 149 trillion RMB).
It's important to note that the top management doesn't necessarily mean a pessimistic outlook for the company. They may sell shares for purposes such as personal financial planning, tax reasons, or charitable giving. However, with Tesla's share price already surging this year, a massive sell-off at the top may raise investor concerns and further exacerbate the momentum of the stock price.