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.
In terms of Tesla.
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.