Tesla shares rise in Frankfurt after Musk’s $5 billion stock sale

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FILE PHOTO: A Tesla logo is seen at the Tesla Shanghai Gigafactory in Shanghai, China January 7, 2019. REUTERS/Aly Song
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(Businesshala) – Tesla shares traded in Frankfurt on Thursday, even after an overnight filing that chief executive officer and top holder Elon Musk has sold nearly $5 billion worth of stock in recent days.

Telsa’s Frankfurt-listed shares rose 4.1% to 953 euros ($1,102.05) in early trading to offset some of the heavy losses suffered earlier in the week in Musk’s sell-off period.

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Musk’s sale was his first since 2016 and follows his weekend survey of Twitter users about to offload 10% of his Tesla stake, which comprises the majority of his estimated $281 billion.

Investors downplayed the importance of Musk’s trade to the stock’s outlook, pointing instead to strong car orders and Musk’s confidence in the company, though brokers said it could be a bumpy day ahead in US trading. Is.

“It’s not that he has a negative opinion of the company,” said Dave Wang, portfolio manager at UBS Global Wealth Management in Singapore.

The filing showed Musk’s trust sold approximately 3.6 million shares in Tesla, valued at about $4 billion, to cover tax obligations after he exercised options to acquire approximately 2.2 million shares for $1.1 billion. Sold another 934,000 shares.

The sales accounted for about 3% of Musk’s total holdings, though it was unclear whether they were related to his weekend’s Twitter poll.

($1 = 0.8648 Euro)

Reporting by Tanvi Mehta in Bengaluru and Tom Westbrook in Sydney; Editing by Subhranshu Sahu and Lincoln Feast.

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