A few days ago I commented that TSLA was providing an excellent short setup after a big run. It didn’t take long for shares to hit my profit target, as insiders began dumping shares once the lock up period expired Monday. After such a big run in a highly speculative company, I’d be selling too.
The Street reports there are about 93 million shares of Tesla stock outstanding and 75 million of those shares were locked up until Monday. While trading volume was nearly 9x greater on the sell off yesterday and insiders clearly took profits, it certainly wasn’t a mass exodus. However, expect a significant overhang in the stock in the coming months due to insider selling pressure and general uncertainty about its ability to be a major player in the electric car market.
Disclosure: I’m short Tesla