Why Haven't Any Tesla Executives Bought Their Own Company's Stock This Year?

There’s an old saying in Tennessee, “there are a million reasons to sell and only one reason to buy.” Like most adages, there’s some truth and some hyperbole in the saying. There are a lot of reasons to sell. 

For example, maybe you decide to diversify your investments and buy some real estate. Or maybe you agree to buy a multibillion-dollar tech company above its asking price and then frantically try and get out of the deal. Lots of different reasons.

But, for the most part, there is only one real reason to buy the stock of a company; because you believe in the company and think the stock is going to go up. So, that raises the question, why have zero Tesla Inc TSLA executives bought even a single share of the company in the last year? 

In fact, none of the company executives have bought any Tesla stock in the last two years. According to Benzinga’s insider trading page (fact-checked through other sources as well), the last stock purchase by a Tesla insider was filed on April 5, 2021, a buy from Director Antonio Gracias in the amount of about $42,000. But, the actual trade date was sometime between August and November 2020.

Also Read: Elon Musk's New Home Is In The 7th Priciest Housing Market In The Country

That might sound like a huge trade for you or me, but in relation to other Tesla insider trades, it is a very small transaction. Now, there have been some bullish trades by Tesla insiders, but no outright stock buys. Some executives, even CEO Elon Musk, have traded options, potentially betting that the stock is not going to drop by a certain amount through selling calls. 

But, betting that the stock is not going to drop by a certain percentage is a lot different from betting that the stock will go up. While there may be no specific reasons behind it, zero stock buys from insiders in the last two years from Tesla is not something investors should love to see.

Photo: Courtesy of Tesla Owners Club Belgium on flickr