stock options exercised by tesla management

stock options exercised by tesla management

So what do you think it means when 2 executives just exercised (sold) stock options. It makes me wonder, happening just ahead of the quarterly results release................

lagann | May 1, 2014

Executives selling stock is not uncommon. There are so many reasons why executives will sell stock that speculation is useless. Most people don't find stock sales by executives to be a sign of anything, only stock purchases. Sales can happen for many reasons, but purchasing stock in the open market means only a couple things. I wouldn't worry about it if I were you.

holidayday | May 1, 2014

I see it as a sign those executives want to buy something big, or pay off a huge debt elsewhere.

It makes me wonder too, though (and not just Tesla, but any executive) and speculating can be fun.

They are selling now and waiting for a pullback to buy again.
Or they are about to get fired and want to get as much income as possible before stock options expire.
Or they know bad things will happen and they are getting out now before bad stuff happens.
Or they just want to retire soon, and are setting up more stable retirement income.
Or their financial advisor says that with the much higher stock price, they are now financially "unstable" and need to get a better mix of bond or cash investments instead of "volatile" or "high-risk" investments.
Or they are needing cash to invest in a GigaFactory.
Or they are needing cash to pay off blackmail from a mistress.
Or they are needing cash to finance a high-tech robbery of a casino.

Speculation is useless, but it sure is fun to do!

GoBlue88 | May 1, 2014

High up insiders/executives normally have to file an option exercise plan weeks to months in advance, and those sales trigger automatically unless you cancel the plan.

As such, I wouldn't read anything into it. Probably just a triggered plan ahead of the normal blackout period before an earnings release. A lot of these guys file plans to have automatic sales quarterly to semiannually, especially after a huge runup in the stock price.

Brian H | May 1, 2014

Also many get stock in lieu of salary, so they must sell some to live. Or use it as collateral for loans.

B744Mike | May 1, 2014

It says nothing about results. Acting on knowledge would be insider trading.