How one billionaire puts his money where his mouth is
Tesla Motors’ founding CEO Elon Musk has acquired over eighty thousand shares in the company. At this stage it may be small change for Musk, but for the ordinary investor it is a fortune.
Musk grabbed the shares while they were trading at an average of $242.00 and worth $20,000,000.00 overall. Musk’s move is noteworthy and indicative of the faith he places in his own company.
Deutsche Bank and Credit Suisse have both rated the Tesla stock as a ‘buy’. They also have a target objective in mind, setting the share price near $300 in the short term. Something is up. But there is no whiff of insider trading. The SEC would have sniffed this out by now.
Tesla announced earnings per share for the last quarter at a healthy $0.48. Revenue for the past quarter currently stands at over a billion. Analysts are predicting that EPS will hit a ceiling of just under $0.90 by financial year end.
Tesla Motors are industry leaders in the futuristic design, development, manufacture and retail of electric motor cars. The company is also developing fixed energy storage products which can be used domestically.
There is nothing sinister about one of the world’s leading industrialists putting faith in a company which he built up from scratch. However, this event surely tells his ailing rivals a thing or two about putting the money where it matters.
Musk is attached with other fascinating endeavours too. While he continues to innovate, Musk is part of a campaign to rid the world of killer robots and find extra-terrestrial life.