Is Tesla Stock a Buy As Elon Musk Sells Billions In Shares?

Since the reins of the electric-vehicle company in 2008, Tesla (TSLA) Chief Executive Elon Musk has defied the odds and routinely exceeded expectations. Is it a purchase now that Musk has sold billions of dollars worth of Tesla stock?

Musk is selling a ten percent share in the electric vehicle manufacturer. Musk’s Tesla stock sales come as he prepares to pay a large tax bill related to his 23 million stock options, which he received in 2012 and which have already vested and will expire in August 2022. Since early November, he has sold around $6.9 billion in shares. Tesla stock has dropped roughly 21% after setting a record high of 1,243.39 on November 4th. However, with a market capitalization of almost $1 trillion, it remains the world’s most valuable automaker. Musk still owns over 166 million shares in the business.

Despite semiconductor shortages and a supply-chain bottleneck, Tesla posted third-quarter earnings that exceeded expectations. Adjusted profits per share increased by 145 percent year over year to $1.86 per share. This was better than the $1.62 consensus expectation. According to FactSet, sales increased 57 percent to $13.76 billion, meeting forecasts.

In the third quarter, it delivered 241,300 automobiles, above analyst expectations of 232,000. Shipments increased by 20% from…