How a good Chief should play?
When we are talking about Tesla, it is not just about the company and its technologies, it is about the CEO as well, and I think it is more about Mr. Elon Musk than Tesla by itself!
"Almost done" with his stock sales after selling over $15 billion worth for more than one month. (Reuters). This news by itself was good enough to encourage the markets and send the stock price back above 1K, after a more than 28% fall from its all-time high at almost $1245. Many believe that this discount in the price, created by mostly two reasons, firstly because of the overall downtrend that we saw for two weeks almost and then Ellon Musk selling plan. His stated goal of selling 10% of his Tesla shares for tax payment put the share prices on sell and this Tuesday in an interview with conservative satirical website Babylon Bee said that "I sold enough stock to get to around 10% plus the option exercise stuff and I tried to be extremely literal here," and just a day after that tweeted that “This assumes completion of the 10b sale," Despite a flurry of sales, Musk still has about 1.5 million stock options that expire in August next year. Anyway, the reason for this selling stock was the Rule 10b5-1 trading plan set up in September. According to Tesla filings Mr. Musk used stock options that will expire next year and sold a portion of the stocks to pay his taxes.
This tax payment was the reason that he moved his office earlier this month to Texas, where he does not need to pay the state income tax. Tuesday's interview also criticized California for "over-taxation" and "overregulation."
After all, now and while the overall market sentiment is positive and encouraging by positive economic data, so far today we can see another 3.85% increase after yesterday 3.80% gain. From the technical point of view also, as we can see in the below chart, it is back above 1K, the key and psychological level, which is the 38.2% of its Fibonacci level from its latest fall from its all-time high. Closing above this level will put the previews key levels of 1,100 and 1,200 USD in the spotlight. On the flipside, breaching under its 23.6% Fibonacci level at $960 can change the market direction for the short time.
