Tesla: Elon Musk sells more, Michael Burry does not bet down… and JPMorgan files suit

Elon Musk is never bored. That has become more than clear to all of us regarding the richest man in the world. And neither are we who follow every step, all the movements of the visionary creator of Tesla. And the company, which should be affected downward by the sale of its founder’s shares, however, is doing quite well in its price, at least to date, this divestment, after a significant, yes, initial cut that already is overcoming.

At this point no one is missing Elon Musk’s query on Twitter on November 6 on whether or not to sell “some” of his Tesla shares, due to the controversy over whether in this way he avoided his tax commitments. Asked his 64 million followers, More than 3.5 million answered mostly yes, and he set out to sell them on the market.

Tesla query result on Twitter

Until Wednesday, has sold 8.2 million shares worth slightly more than $ 8.8 billion. Of the total amount, he has sold 2.8 million, for about 3,000 million for the payment of taxes on stock options, according to SEC data. The translation, which has sold more than what I needed, around 5 billion more in shares than he needed.

And they will wonder then how despite that strong sale and in addition to the owner of the company, its shares have stabilized after the initial 12% drop. Part may come from investors understanding the reasons and that it is not due to any company problem. It also starts because we have known that this value, famous for its strong bets to the downside, its short positions that have sometimes drowned the value, has been reduced by the hand of one of its traditional bears: Michael Burry.

These days we have known that its investment arm, Scion Asset Management has not presented, at the end of the third quarter of the year, downward presence on the value. You know Burry is well known, including Hollywood movie, for his downward stance on the housing market before the mortgage crisis.

In its quotation graph we see how that initial negative effect of 12% of last November 9 has already been corrected, with the advances, in the last five sessions, for the value of 2.40%, which is close to 22% already in the last month and that turn into gains of 61.7% in the previous quarter. so far this year, since January, Tesla gains 54.3% on the stock market and since November of last year the revaluation of its shares reaches 118%.

Tesla annual price of the sector

To all this, we can add that JPMorgan just sued Tesla for $ 162.2 million. And it is that he accuses the electric vehicle manufacturer of failing to comply a contract agreed between the two in 2014 referring to the warrants that Tesla beat the North American bank.

You already know that warrants give the owner of these financial products the right to buy shares in a company at a certain price and on a certain date. And it all comes from a tweet from Elon Musk in 2018 in which he pointed out, in one of those moments that he has, that the company was considering leaving Wall Street.

Regarding recommendations, we kept the 1,298 dollars with purchase advice where you place your target price New Street Research, indicating that Tesla has been 10 years ahead of the rest of the industry. And Jefferies puts it above, at $ 1,400, from the previous 950.

Tesla recommendations and price target for its shares

Desde The Wall Street Journal, with widely divided opinions, Of the 41 analysts who follow the value, 15 choose to buy, 2 to be overweight, 12 to hold, 3 to underweight, and a further 9 to sell with medium advice to hold portfolio value. Regarding target price it is placed well below its price, at 831.18 dollars per share.

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Tesla: Elon Musk sells more, Michael Burry does not bet down… and JPMorgan files suit