The Future for Tesla Stock Following the Insider Trading Scandal

The end of February brought in news that the SEC had accused Musk of insider trading. 

Tesla’s stock price took a hit at first, but it’s now showing some signs of recovery thanks to other factors at play. What will the likely impact of this controversy be, and how could it impact the future outlook for the Tesla stock?

Insider Trading Scandal

Elon Musk’s brother Kimbal Musk sold $108 million worth of Tesla shares one day before Elon Musk tweeted a poll asking the world if he should sell his own 10% stake.

As anyone could have predicted based on the track record of Musk’s tweets, the poll sent stockholders into panic, resulting in a dip in the Tesla stock price. Musk did indeed decide to sell many of his shares, which decreased prices further. 

Tesla’s track record doesn’t help its cause. Elon Musk has a history of being involved in scandals, and many also accused him of market manipulation when he tweeted about bitcoin and dogecoin in 2021.

What it Means

The Future Outlook for Tesla

Considering that Tesla has found popularity among a progressive demographic who want to believe they’re investing in something that will positively impact the world, these (arguably) morally questionable accusations could harm its brand and curb its growth potential.

The company likely has a rocky future ahead, and the results of its various investigations will be significant, but overall the picture still appears positive.

Swipe Up

for more finance, business, and real estate advice

Read More

Acorns vs Robinhood vs Webull vs M1 Finance: Which One is the Best?

3 Everyday Retail Stocks Yielding Over 3%