Tesla shares fell from $1,069 premarket trading to $1,030.71 today after Elon Musk, chief executive, sold $687m of stock.
Musk sold $5bn worth of shares early in the week as a result a poll he conducted last week. The billionaire, who is an extravagant billionaire, asked 63.4 million of his followers if he should sell 10% of his quota.
Yesterday, the shares of the automotive giant rose to $1,103.40, a 3.3% increase over earlier this week, and closed at $1,063.51.
In the initial sale round, 3.6 million shares were sold by the trust of the chief executive. The trust then offloaded another 934,000 stock to meet tax obligations. Two separate filings show that Musk sold 587,638 and 52,099 shares in multiple transactions on Thursday.
According to market data and filings, four former and current members of the Tesla board, including Musk’s brother Kimbal Musk filed to sell shares worth nearly $1 billion late last month.
A CEO asking his employees if they should sell large numbers of shares will never be reflected in the share price. Craig Erlam, Oanda market analyst, said that selling shares a day after his brother sells large numbers only increase investor fear.
