Although Musk previously promised not to sell Tesla shares for at least two years, this did not help to reassure investors. Tesla’s stock price hit a two-year low on Friday (23rd), and the decline narrowed to 1.11 by the time of writing. %, tentatively reported at $123.96 per share.
Musk has sold $40 billion worth of Tesla stock since the end of last year, including $15 billion after he made a similar promise not to sell the shares in April. He recently promised that he would not sell Tesla shares in the next one and a half to two years in an attempt to appease investors.
Musk’s stock selling, combined with what is seen as a distraction from running Tesla since his purchase of Twitter, and concerns over a slowdown in China’s economic growth, has delivered the electric car maker’s worst share price since it went public in 2010 year.
Before the deadline, Tesla (TSLA-US) intraday stock price fell 1.11%, tentatively reported at $123.96 per share, after the stock price fell 3.5% at one point, hitting a new low since September 2020.
Howard Fischer, a former U.S. Securities and Exchange Commission (SEC) lawyer and partner at Moses & Singer law firm, said that if Musk sells about $1 billion in stock again in the near future and puts Tesla’s stock price under downward pressure, investors will Reasonable damages may be sought for securities fraud.
SEC rules require public companies and their executives to disclose material information through monitoring channels known to investors, though the SEC did not specify how companies should do this. Musk, on the other hand, has had friction with the SEC since he announced on Twitter that he would take Tesla private in 2018.
Edward Moya, a senior market analyst at OANDA, said Musk looked worried, announcing that he would no longer sell Tesla shares and floated the idea of buying back shares. The short side is firmly in control of the decisive situation, while retail investors are thinking twice about buying at this low point.