TL;DR
Tesla insiders dumped $73M in stock. Pre-planned or a sign of impending doom? History suggests caution for average investors.
Story
Is Tesla stock sinking? Multiple executives, including Elon Musk’s brother, Kimbal, recently dumped over $73 million worth of shares. While some claim these sales are pre-planned, it’s hard to ignore the timing.
Think of it like rats fleeing a sinking ship. Are they privy to insider knowledge the public isn’t? Or are they just diversifying? Remember Enron? Execs cashed out millions while assuring everyone the company was solid. Sound familiar?
Individual investors often get burned. They’re told “buy the dip” by online gurus, only to see their savings evaporate. It’s like musical chairs – someone’s always left standing when the music stops, and it’s rarely the small fish.
‣ Stock Option Plan: Companies give employees the option to buy stock at a set price. Sounds great, right? But when execs exercise these options and immediately sell, it raises eyebrows. ‣ Trading Plan: Pre-arranged schedule for buying/selling stock. Sure, they could be innocent. But history’s littered with “pre-planned” sales just before a stock tanks.
This situation stinks of 2008. Big players protect themselves while average Joes are left holding the bag. Is Tesla doomed? Who knows. But this mass exodus of insiders doesn’t inspire confidence. Be warned.
Advice
Blind faith in any company is dangerous. Diversify, research, and don’t be afraid to question the narrative. Especially when insiders are cashing out.