The automaking giant's CEO could be playing with the company's shares on the stock index as per analysts' belief.
Tesla Motors has been growing as a successful automaking company for the past couple of years with the electric vehicles that it has been making which have proved to be one of the best hybrid cars being currently produced. During the initial stages when the firm was going through a difficult time to prove itself in the market, the firm’s CEO Elon Musk declared that he won’t be taking his salary from the company as long as it does not get out of the crisis it was facing. Musk not only enjoys that largest stake in the luxury car making a firm but also has an option of obtaining more shares. Even if those options are not taken into consideration, it cannot be ignored that around 23 percent of the whole firm is owned by the socialite.
Last week on Friday, Elon Musk was seen announcing a new update for the Model S car which made the analysts in the industry believe that he could even be carrying out some kind of manipulation on the shares of the smart car making company. Previously, the number of shares Musk owns in Tesla business came about to have a value of $6.3 billion whereas currently, the value of the shares has risen up to a massive $8 billion. The CEO of the firm seems to be gaining at a high speed as the net worth of the shares that he owns increases. After the announcements that were made by him last week, the following session on the stock index showed that Musk has a lot of control on the activity of the shares of his company as their value increased by a big difference on something that did not prove to be a major news.
Previously, analysts thought Musk was more worried about the kind of growth Tesla was going through and how it was holding up with it. But now, the attitude seems to have reversed as now analysts believe he is more concerned about the shares of the firm than the actual growth of the firm which has made them think if manipulation is being done by him in any way.
In the past when Tesla has made a small announcement, the shares of the firm have followed the same kind of activity and jumped by a mile. This looks to the analysts as if the CEO only wishes to increase the value of the shares on the stock index which is why he is carrying out little activities like these. Musk, however, has denied of any rumors related to this.
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