Tesla just had its worst week in 20 months after Elon Musk sold $5.7 billion worth of shares

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  • Tesla stock closed its worst week in 20 months.
  • Before Friday’s close, the company’s worst weeks were in February and March 2020, as the coronavirus pandemic emerged in the US, stirring up markets.

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Tesla shares fall 15.4% For the week close to Friday, after CEO Elon Musk began this week with his plan to sell a large block of his holdings.

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It marks Tesla’s worst one-week performance in 20 months, and the stock’s worst week to date except for the fall in February and March 2020, as the coronavirus pandemic raged in the US, leaving markets rocking .

Tesla closed down 2.8% on Friday.

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Musk, who still owns more than 167 million shares of Tesla according to a Friday morning financial filing, sold nearly $5.7 billion worth of stock this week.

Musk sold the shares partly to meet tax obligations related to the exercise of stock options. Before making his sale plan public, Musk asked his 62.5 million Twitter followers to vote in an informal poll, telling them that their vote would determine the future of his Tesla holdings. This week’s filing shows that, in fact, he knew some of his shares were up for sale this week.

Tesla Shares Still Up About 46% Year-to-date, following a record closing price of $1,229.91 on November 4, 2021.

By comparison, shares of Ford are up about 120%, shares of General Motors are up about 51%, and shares of Volkswagen AG are up about 66%.

The sell-off came after Tesla’s share price collapsed, and coincided with a record-breaking IPO in auto for Rivian, a new maker of fully electric pickup trucks and sport utility vehicles.

Shares of Rivian closed with a gain of 5.6 per cent on Friday. It is up about 66.6% since its launch on Wednesday.

Rivian raised nearly $12 billion in its first market on Wednesday, making its IPO the largest in the world so far this year. Rivian is now the second most valuable carmaker in the US after Tesla, though it expects to record less than $1 million in sales for the third quarter.

In a financial filing, Rivian said it has 55,400 preorders for its R1S SUV and R1T pickup truck, as well as a contract to build 100,000 electric delivery vans for Amazon by 2030.

Musk responded to the success of Rivian’s IPO on Twitter, saying:

“I expect that they are able to achieve high production and breakeven cash flow. This is the right test. There have been hundreds of automotive startups, both electric and combustion, but Tesla is the only American to reach high volume production and positive cash flow. is a car maker. In the last 100 years.”

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