Elon Musk Buys $20 Million In Additional TSLA Stock

Tesla

NOV 11 2018 BY VANJA KLJAIC 31

The $20 million gives The Nothing Of Tesla another 56,915 stocks.

Elon Musk is doing everything he can to prove everybody else wrong. The company recently made strides in both production and delivery numbers, and seemingly, they’re taking away production and the delivery hell away.

And wow, Elon Musk has bought another batch of Tesla stock, putting his money where his mouth is. In return, this is shutting down any short sellers who are constantly harassing Musk and Tesla. The high-praised eccentrical billionaire investor and inventor – now serving the role of Nothing at Tesla – bought 56,915 stocks, worth $20 million. He now owns nearly 34 million shares. This was revealed in a Tweet by TraderFloridasFIL, showing us the SEC form, showcasing the changes in beneficial ownership of the company.

This move makes Elon Musk even more ready to show the world how much trust he’s got in TSLA stock, but also, to help him secure even more mid-term funding for his company. While we at InsideEVs aren’t allowed to own automotive stock (for obvious reasons), we do tend to keep an eye out for the automotive stock market. And for the most part, TSLA stock has been on the upward trajectory in recent months, pushing more and more investors into putting their money into it.

However, for Elon Musk, despite the continual mess, lawsuits, settlements, stock turbulence, shorter efforts, and other, more or less pressing items, he continues to continues to put his financial eggs back in the basket and buy even more Tesla stock. While some more prudent investors would shy away from this, in reality, this shows you how much trust the CEO puts in his own company.

With increased production and delivery, the upcoming Tesla Semi, Solar Roof and other, more or less interesting products coming out, Tesla’s future finally seems bright. And Elon Musk knows that.

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31 Comments on "Elon Musk Buys $20 Million In Additional TSLA Stock"

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Something doesn’t add up. 56,915 * 351.4 = $ 19999931

Let’s ask the SEC to do an investigation.

Yeah, the title should say $20M. The writer got confused by the total number of shares owned after the transaction, which is show as 33.8M.

Fixing. Thanks!

Do Not Read Between The Lines

So he bought $20M, minus $69.

Those damned brokerage fees! 🤣

Yeah, should have bought another 1/5 of a share… 😉

It still lists his title as CEO.

Elon Musk was forced to step down as Chair of the Tesla Board which governs Tesla, but Musk is still the CEO, someone who executes the actions of a company. The two are different positions.

I think Vexar was referring to the joking/sarcastic/provocative tweet (referenced in the article) where Mr. Musk called himself the “nothing of Tesla”

He still is CEO.

My impression was that sb. counter-attacked the daily morning dips the last two weeks. This is how to handle course manipulation of the shorts! They are not the only ones with deep pockets.

The filing just says the transaction date was 11/9.
There was a huge sell order at beginning of trading that day, that’s at least what my stock chart program show.

I’m happy. I sold 1/3 of my TSLA to diversify into gold and feel pretty confident. TSLA is my milk-cow and gold is my fall back if we have another economic downturn.

Gold doesn’t report a profit or generate dividend income.
I never buy gold.

Is this the batch he announced he will buy directly from Tesla to compensate for the SEC settlement, or is it just yet another purchase on the open market?…

If you look at bottom of the SEC form 4 that they posted above, in the Explanation of Responses Line 1,that this is the direct purchase of stock from Tesla that he said he would make after they got fined 20 million dollars.

Thanks for that! So SEC fined Tesla and Musk each $20M, but Musk took it upon himself to pay the full $40M and not have Tesla suffer because of his tweet.

Huh? AFAIK, only Musk got fined, not the company, and Tesla was expressly forbidden from paying the fine for him (their insurance most likely would have allowed this, as do most corporate policies).

According to the SEC.gov website they were both fined 20 million dollars in the settlement. https://www.sec.gov/news/press-release/2018-226

Musk was personally fined $20 million by the SEC and Tesla was fined a separate $20 million. The word was the Musk was not allowed to pay Tesla’s fine. However, he planned to buy $20 million in stock from Tesla to offset its fine.

This must be the third direct stock purchase (not open market) in recent weeks.

First (early October for around $260 ) was the $20m as cash flow compensation for the SEC fine Tesla had to pay, then another $10m end of October and now (Nov-09) another $20m — all direct from Tesla.

That’s at least from the various press releases, hope it’s not double counting – with so many press coverage over more than a month time ….

At the time of the settlement it was announced that Elon would make a direct purchase of stock from Tesla, this was completed on 11/09/18 for approx. $20 million dollars. The $10 million dollar purchase was done on the open market on 10/29/18 according to SEC form 4 that was filed. https://www.sec.gov/Archives/edgar/data/1318605/000149473018000006/xslF345X03/edgardoc.xml

Thanks for the info.
So this Nov-09 for $20m is finally the purchase announced since end of September and it’s now for 351$ a share and not for the approx 260$ it was floating through the press early October.

Yes. The federal court judge did not approve the settlement until 10/16/18. Tesla’s 8k filing of the same day outlines the agreement and Elon’s intention to purchase, and Tesla’s to sell $20m worth of shares at the next open trading window at the then current market price. https://www.sec.gov/Archives/edgar/data/1318605/000156459018024373/tsla-8k_20181016.htm Open trading windows are times specified by companies in which their executives and key employees may trade company stock.

That explains the 25% Share price rise in last month…

Says something of the company when the top guy keeps re-investing his own money in the company. I wonder how many CEO’s of legacy manufacturers are doing the same?

The Sears CEO put up lots of his own money to loan to Sears before Sears filed for bankruptcy.

I am not saying that Tesla is Sears. But the example of CEOs who buy its own company shares have happened many times before. Often, if the CEO truly believe in the company and believes the price is undervalued, then they often will buy some shares.

He is trying to get stock price to $360/share or higher so Tesla doesn’t have to pay back the debts due soon with cash. It would be able to pay back the debt with stocks instead.

They can reduce the conversion price if TSLA is below 360 in February and bondholders will gladly take shares instead of cash.

Musk plans to pay in cash even if TSLA is above 360. They have call options which effectively do this.

Finally, buying shares from the company has no direct effect on the stock price.

Increasing the number of shares is usually “watering down” the tiny part owned (e.g. share) of the company, so if the corporate value stays the same and the number of shares increases the share value goes down. This usually happens only for significant part of new shares issued, not a small $20m out of $60B market cap.

“Musk plans to pay in cash” — not sure about this : Tesla need urgent funds to increase production in Europe including a new EU factory costing $2B, another $2B factory in China, and some new USA factory for building Roadster, Semi and ‘Y’ — much better investments than paying back Bonds …..

Eccentrical? I have to reorientate my mind to get my brain around that one.