TL;DR

Tesla insiders are dumping stock amid grim financial projections and lawsuits, mirroring historical financial scandals. Retail investors beware: are you holding the bag?

Story

Tesla insiders are cashing out—again. CFO Vaibhav, Chairwoman Denholm, and Elon’s brother, Kimbal, recently dumped tens of millions in Tesla stock. Déjà vu, anyone?

This isn’t insider trading in the illegal sense, but it reeks of insider knowledge. They’re exercising stock options (‣ Stock Options: The right to buy company stock at a set price, often lower than market value.) and selling at inflated prices. Like musical chairs, someone’s left holding the bag when the music stops.

Remember Enron? Executives enriched themselves while the company crumbled. Tesla’s board, facing lawsuits over “excessive compensation,” now settles while simultaneously cashing out. Where’s the accountability?

Kimbal’s “lucky timing” with stock sales? More like rats fleeing a sinking ship. He’s been selling consistently—some wins, some losses. This time, it’s a big win for him. But what about retail investors?

Tesla’s Q1 and Q2 projections? Grim. Demand is down, used car prices are plummeting. Yet, executives keep cashing in. It’s a classic pump-and-dump (‣ Pump and Dump: Artificially inflating an asset’s price then selling before the inevitable crash.), just dressed in a suit.

This isn’t about innovation; it’s about exploitation. Blind faith in charismatic leaders leads to financial ruin. Learn from history, or be doomed to repeat it.

Advice

Don’t be fooled by hype. Research before investing. Insider selling is a major red flag.

Source

https://www.reddit.com/r/stocks/comments/1ikrtsl/tesla_cfo_chairwoman_and_elons_brother_sold_tens/