Tesla (TSLA) has managed to maintain its market value of $ 1 trillion despite CEO Elon Musk continuing to sell shares.
EV shares are doing well, and Rivian has also risen – now worth north of $ 145 billion.
Tesla’s shareholders are used to a wild ride, but things have been particularly wild over the past two weeks since CEO Elon Musk announced he would sell 10% of his stake in the company.
Sales continue this week and may last for several more weeks.
In a new SEC archive today, the automaker revealed that Musk exercised another tranche of 2.1 million stock options and sold about half of them again. That brings the total sale of shares from Musk to about $ 8 billion over the last week.
He is still less than halfway through his sale if he sticks to his plan of selling 10% of his inventory.
The move has put pressure on Tesla’s stock price, which coincidentally reached a new record high and valuation of over $ 1 trillion just before Musk announced the sale.
The CEO too questioned the new increase in valuation based on Hertz ordering 100.0000 Tesla vehicles.
Since Musk began selling, the stock has briefly dived below its new $ 1 trillion valuation, but Tesla’s share (TSLA) has risen 3% today – strengthening the company’s market value of $ 1 trillion:
It will be interesting to see how the stock performs over the next few weeks as Musk is likely to continue to unload more shares to cover its upcoming tax bill from new stock options.
The resistance at this level shows how strongly the market backs electric cars.
In addition to Tesla’s stock, Rivian has been on a significant uptrend since it was listed last week. Rivian has risen nearly 10% today, bringing the valuation to over $ 145 billion:
The rise in the share price has made CEO RJ Scaringe a new billionaire, and major shareholders such as Amazon and Ford now have a valuable stake in a budding electric car maker.
It also shows a clear trend that investors are extremely positive about the electrical transition in the automotive industry.
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