The Nothing Of Tesla Buys $10 Million More In TSLA Stock

Tesla CEO Elon Musk

OCT 30 2018 BY STEVEN LOVEDAY 18

Talk about the ultimate faith in your company.

We all know that Tesla stock is constantly on the up and down, so much so that it’s crazy. I told my wife if we could have grabbed up some Tesla stock a week or so ago and then sold it this week, we’d be in a better financial situation to pay our bills and raise or kids. But, sadly, at InsideEVs, we can’t play the stock or referral game. Not only this, but none of our writers are allowed to own any automotive stock, whatsoever. Take it or leave it, but that’s the way we roll.

While we don’t cover or pay much attention to stock values, Tesla CEO Elon Musk has beat the usual odds, buying another $10 million in Tesla stock ($9,997,261.10 to be exact, and yes he’s still technically listed as CEO).

In addition, the famous CEO has already revealed that he plans to purchase another $20 million in Tesla stock soon. This effort can only be seen as a way to attempt to curtail the $20 million debt to Tesla incurred by the SEC.

Does a traditional CEO generally rely on his/her own company’s stock to make bank? No.

Does a traditional CEO hold much more company stock than all others? No.

Our list of questions and answers here could go on and on and on. But the point is, despite the continual mess, lawsuits, settlements, stock turbulence, shorter efforts, etc., Tesla CEO Elon Musk continues to put his financial eggs back in the basket and buy even more Tesla stock … as if he doesn’t own enough of the company already. Yes, we will say that his track record for seeming just a wee bit crazy is true, but what world-changing intellectual doesn’t carry such baggage? Incredibly intelligent people are often outlandish and unique. In the end, the fact that Musk is still buying more and more Tesla stock forecasts additional successes that are yet to come.

All in good time though, right? Tesla has to deliver globally on all these Tesla Model 3 reservations before it can move forward full-tilt on the Model Y, pickup truck, and semi. However, this is surely not a bad problem to have. There’s nothing quite like incredible support and demand. Wow, wow, wow, for EV adoption as a whole.

Source: Tesla Investor Relations

Categories: Tesla

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18 Comments on "The Nothing Of Tesla Buys $10 Million More In TSLA Stock"

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MABUS

S3XY poker

ModernMarvelFan

That means “Nothing”.

Nothing does anything means Nothing….

=)

Counterpoint

Whatever anyone says about him, Elon Musk clearly believes in his company. By continuing to invest in Tesla, he is making a public commitment to the future of the company, which is important both to outside investors and Tesla employees.

KumarPlocher

This is the only take that matters to me. Thank you.

Michael Will

Nobrainer with the undervalued stock when you factor in all its potential with tesla energy etc, and the obvious advantages model 3 has over any competitor so far. If I had extra cash on the sidelines I would also want this discount price for more shares.

antrik

Model 3 is already priced in as far as I can tell, and then some. And while Energy has a lot of growth potential, it’s impossible to say how much exactly, and thus whether it will ever constitute a substantial portion of earnings…

The most solid bull case IMHO is primarily based on the fact that the stock price doesn’t reflect the huge potential of future automotive products beyond the Model Y, making it very likely that Tesla will be selling several million cars per year at some point…

drpawansharma

That reminds me of a show about nothing

mzs112000

I wonder, how much stock would he need to buy in order to be the sole majority shareholder?
If he gets to that point, or him and a few other higher-ups in the company get enough stock to equal 51%, then they could vote to take Tesla private, if they did that without increasing the stock price, they wouldn’t need any external funding…

Chris O

From what I could dig up Musk owns ~34 million shares out of a total of ~170 million so he still has some way to go…This latest purchase would add another ~30K shares but clearly that doesn’t move the needle.

Jason

You can also have ownership through “synthetic” means like buying options or other derivatives (e.g. forward contracts, etc) that could gives you control. That is why the SEC mandates certain disclosure about ownership.

Options are a lot cheaper to buy than the underlying stock.

antrik

While Elon is very rich on paper, most of the wealth actually comes from the value of the stock he owns — he can’t really use that to buy significantly more stock.

Also, even if he had the voting power to take Tesla private without having to consult anyone else, he’d still need to raise funds to pay off anyone who can’t or doesn’t want to keep their shares when the company goes private.

Neither of these was the main reason why he abandoned the plan, though…

TM3x2 Chris

I just bought 10 shares of TSLA – my Tesla holdings are growing exponentially:)

ffbj

That’s a lot of 0’s.

Milfan

Tesla has retained the #1 title in Worldwide sales and also extended the lead with #2 BYD. Thanks to genius of Elon Musk and his team. Soon he will become “Something of Tesla”.

yan ming

Thanks for this writing.

yan ming

TM3x2,
I like your humor: ” 10 shares — exponential ” !

The “Nothing of TESLA” also makes me laugh.

yan ming

” The Thing of TESLA”

antrik

Not sure what your definition of a “traditional CEO” is: but yes, it is pretty common for a founder-CEO to hold a signifiant portion of the stock.