As Tesla stock has fallen in recent weeks, members of the board and an executive at Elon Musk's company have sold off millions of dollars in stock, according to filings.

Summary

Tesla board members and executives have sold over $100 million in stock since early February as the company’s shares decline.

Board member James Murdoch sold $13 million in stock on March 10, coinciding with Tesla’s worst single-day drop in five years.

Kimbal Musk sold $27 million in shares last month, and board chair Robyn Denholm offloaded over $75 million through a predetermined plan.

The sell-offs come as Tesla’s stock has fallen nearly 50% since December.

    • sp3ctr4l@lemmy.zipEnglish
      21·
      15 hours ago

      https://www.financecharts.com/compare/TSLA,TM/value/pe-ratio

      So uh… Toyota’s PE is almost 8, a bit down from its historical average of about 9 or 10.

      Tesla’s is currently about 115.

      Down almost 50% from its highs around 200 during Jan 2025.

      If Tesla’s actual $$$ stock/share value dropped down to … lets say a PE of 10… that would be… well ok it is currently still dropping rather rapidly, but lets say rightnnow its $225 per share.

      If Tesla ‘corrected’ to a PE of 10, that’s a share value of about $19.57.

      About a 91% drop from where it is right now…

      … which would wipe out around $700 billion of market cap.

      These are ballpark figures based on a hypothetical scenario, this is not financial advice, but yeah, that is a way of looking at how overvalued Tesla is (or could be).

      EDIT: Musk himself apparently owns about 410 million Tesla shares, as of Feb 2025.

      https://www.investopedia.com/articles/insights/052616/top-4-tesla-shareholders-tsla.asp

      So… a 91% reduction of 410m shares * $225 per share…

      That would be a personal loss for Musk of about $82 billion, from this exact moment.

      That’d put his net worth at about $273b, based on him having a net worth of $355b as of Feb 2025… but his net worth may already be significantly less than $355b, because Tesla has dropped a lot between the date of the source I’ve found for his net worth, and right now.

      EDIT 2

      https://www.forbes.com/profile/elon-musk/?list=rtb%2F&sh=7123ba5d7999

      Uh wow yeah, ok, between Feb 28 2025 and Mar 18 2025, he’s already lost about $34 billion… and is currently at $321 billion.

      So… if you take $82 b out of $321, then he’s down to around $240 ish.

      Sadly… he would be the richest person in the world, even after that, he’d have to get below $210b ish to sink to #2 under Bezos, below about $200b to be #3, also under Zucky boy.

    • Buffalox@lemmy.world
      45·
      19 hours ago

      I wouldn’t be surprised if Tesla chooses to cook the books.
      It will be very strange if numbers aren’t in red.

      • My_IFAKs___gone@lemmy.world
        23·
        19 hours ago

        The price the market is willing to pay for one share of stock vs the amount of profit the company is making per share.

        A P/E of 90 means someone is willing to pay $90 for a share of a company that is netting $1 of profit for each outstanding share it has.

        • merc@sh.itjust.works
          23·
          18 hours ago

          In terms of Tesla.

          • Tesla: 112
          • Amazon: 35
          • Microsoft: 31
          • Google: 20
          • GM: 7.7
          • Toyota: 7.4
          • BMW: 7.3
          • Honda: 6.9
          • Ford: 6.8
          • Mercedes-Benz: 5.8
          • Subaru: 5.4
          • Hyundai: 3.0

          So, let’s be incredibly generous and say that Tesla should have a P/E ratio that’s similar to a well run auto company, like 7. For it to have that P/E ratio, its stock price should be about $14 per share, not $228. If Tesla lost 94% of its value, it would have a P/E ratio similar to a well-run car company that made good cars with an anonymous CEO that nobody hates.

          But, just pretend it’s a tech company, not a car company. (Bullshit, obviously, but just pretend.) It is still overvalued by a factor of 4-5 compared to other big tech companies.

          Somebody’s going to make mountains of money shorting Tesla stock. The problem is that markets can remain irrational longer than most people can remain solvent.

        • empireOfLove2@lemmy.dbzer0.comEnglish
          14·
          17 hours ago

          And to add onto this, very high P/E ratios can often indicate a stock is artificially overvalued. Typical p/e’s on the DJIA average out to around 20, and most companies will have P/E’s between 5 to 30… a P/E of 90 indicates a huge, huge value bubble.

    • My_IFAKs___gone@lemmy.world
      8·
      19 hours ago

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