In a favorable context for Tesla, with an increase in the value of its shares after Donald Trump’s victory in the US elections, one of the company’s leaders sells shares.
The president of the board of directors of Tesla, Robyn Denholm,sold a portion of his shares in the company, for an approximate value of US$35.3 million. The sales, made on November 15, were made at prices between US$310,052 and US$320,003 per share.
It should be noted that these transactions are part of a pre-established sales plan under Rule 10b5-1, which allows directors of listed companies to sell shares according to a previously agreed trading plan, to avoid suspicions of insider trading, as explained by Investing.com.
Additionally, Denholm exercised stock options and bought 112,390 at a price of US$24.73 per paper. Following these transactions, his direct ownership of shares in Tesla is reduced to 85,000.
What the market analyzes
These operations occur at a time of big boom for the electric vehicle manufacturer, whose market value has increased considerably since Donald Trump’s victory in the US presidential elections.
The close relationship between Trump and Elon Musk, CEO of Tesla, favored expectations about the company. In fact, the president appointed the businessman to lead a new Department of Government Efficiency, whose mission will be to eliminate bureaucracy, reduce excessive regulations, cut unnecessary expenses and restructure federal agencies. Musk has promised to “shake the system.”
Trump and Musk
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On the other hand, it was reported that the Trump team plans to relax regulations for autonomous vehicles and the creation of a new legislative framework will be one of the priorities of the US Department of Transportation.
Although the National Highway Traffic Safety Administration (NHTSA) can issue rules facilitating the deployment of autonomous vehicles, only an act of Congress could allow mass adoption of these vehicles. NHTSA currently allows manufacturers to deploy up to 2,500 autonomous vehicles per year under an exemption, but legislative attempts to increase this figure to 100,000 have failed.
The creation of this new regulatory framework would a big boost for Tesla, and especially for Elon Musk, who has been promising fully autonomous vehicles for years without success. Additionally, the company’s long-term vision includes producing a fleet of “robotaxis,” autonomous vehicles that could transport people without human intervention.
Source: Ambito
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