The stock market can be weird sometimes. Looks like one of those odd days for
investors. The company managed to disappoint the bulls by not doing what it never announced.
Tesla (ticker: TSLA) shares fell 4.8% on Thursday. V
fell by 0.3%, and
Dow Jones Industrial Average
increased by 0.2%.
The lack of news is disappointing because, according to social media, December 9, 2021 should have been a big day for Tesla stock. Cause? Just. The 9/12 date gained traction in meme style as Tesla bulls wondered if there could be a product announcement or a share split.
The 12/9 noise got loud enough to get people to explore possibilities, including Barron’s… However, the people we interviewed, including investors and analysts, did not expect anything significant to happen on Thursday.
“We believe [12/9] will not be an event and will not be a major risk to the stock, ”said Wedbush analyst Dan Ives. Barron’sadding: “This is Tesla, so who knows.”
The division of shares will require a board meeting. Tesla did not respond to a request for comment on the dates of the board meeting. The company holds approximately six board meetings a year. It is impossible to know if this has happened recently.
And on Wall street journal At a conference call earlier this week, CEO Elon Musk said there was no news on December 9 that he knew of. This weakened the upbeat sales a bit.
However, what started out as a joke may have led to disappointment in the stock market, judging by the reaction on Thursday.
Tesla stock is still fine. The stock is up about 35% in the past three months, although the stock is still down about 15% since Musk said he would sell some of the shares.
The end of the sale of Musk’s shares is likely to be the next big catalyst for the stock’s gains. Sales is a canopy. Institutional investors probably don’t want to increase positions if they are inclined to do so, while the CEO has millions of shares to sell.
Musk began selling for about a month after contributing to the debate over the taxation of billionaires. The sale of shares means that he has to pay taxes on capital gains. Musk also had expired stock options. Share options are treated as regular payment for tax purposes when exercised.
Email Al Ruth at [email protected]