Tesla Inc. TSLA shares were down in premarket trading on Thursday, pointing to a fourth straight down-session.
What Happened: The weakness comes on the back of CEO Elon Musk’s disclosures late on Wednesday regarding the sale of 22 million Tesla shares worth about $3.58 billion at an average purchase price of around $163.
See Also: Best Electric Vehicle Stocks
Tesla bulls voiced opinions against the move, with fund manager Ross Gerber calling upon Tesla’s board to immediately announce a stock buyback to mitigate the dilution stemming from Musk’s stock sale. Another Tesla bull, Wedbush’s Daniel Ives, called the stock sale as fueling the black cloud around the EV maker’s growth story.
If the stock does not hold support around the $153 level, the upper bound of a consolidation range from October 2020, there is a risk of it dipping to the lower bound around $130.
Price Action: In premarket trading, Tesla stock was shedding 2.89%, to $152.24, according to Benzinga Pro data.
Read the original article