Sign up Canada
Proactive Investors - Run By Investors For Investors

Elon Musk scoops up US$25m worth of Tesla shares

A day after sacking 9% of Tesla's workforce, the CEO buys 72,500 shares of the electric-car company he runs
Elon Musk
Tesla shares are up almost 20% since the start of June

A day after announcing the sacking of 9% of Tesla’s workforce, Elon Musk has bought 72,500 shares of the electric-car maker valued at roughly US$25mln, according to a filing with the US Securities and Exchange Commission.

Tesla’s shares are up almost 20% since the start of June, and Musk’s purchase is bound to irritate short-sellers of Tesla’s stock who Musk has promised to “burn” in the past.

The steady rise in the unprofitable car maker’s share price has put short-sellers in a difficult position and their mark-to-market losses in June come to US$2.09bln, according to data the financial analytics firm S3 Partners supplied to Reuters.

The job cuts, which Musk tweeted about this week, affect mostly salaried workers at Tesla, and will result in the firing of about 3,500 employees at the company, which employs roughly 40,000. The sackings are not aimed at the car maker’s production workers so this will not impede Tesla’s ability to reach its Model 3 production targets in coming months.

Read: Electric car maker Tesla slashes 9% of its workforce as part of what Elon Musk calls a 'difficult, but necessary' reorganization

Last week, Musk said it was “quite likely” that Tesla will meet its challenge of manufacturing 5,000 Model 3 cars each week by the close of June.

Musk said the job cuts were necessary to put the company on the road to profitability after almost 15 years of not delivering an annual profit.

Tesla shares broke even today, finishing at US$344.78.

View full TSLA profile View Profile

Tesla Inc Timeline

Related Articles

1508431368_iplayco-wall.jpg
November 19 2017
When finalised, Iplayco will own the IP rights to the Play Mart and Play Planet brands, as well as the Play Planet line of business. .

No investment advice

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You understand that the Company receives either monetary or securities compensation for our services. We stand to benefit from any volume this write-up may generate.

You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

Copyright © Proactiveinvestors.com, 2018. All Rights Reserved - Proactive Investors North America Inc., Proactive Investors LLC

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use