Kathleen Wilson-Thompson, a director at Tesla, Inc. (NASDAQ: TSLA), has executed a series of stock transactions, selling a significant portion of her holdings in the electric vehicle giant. According to a recent filing with the U.S. Securities and Exchange Commission (SEC), Wilson-Thompson exercised options to acquire 100,000 Tesla shares at a price of $14.99 per share on January 6, 2025, amounting to a total acquisition cost of around $1.5 million.
The sale followed shortly after, with Wilson-Thompson offloading 64,600 shares, generating approximately $41.16 million in proceeds. The shares were sold at prices ranging between $402.84 and $426.15 per share. After the transaction, she retained a holding of 5,400 shares in Tesla.
Tesla, with a market capitalization of $1.27 trillion, has seen considerable volatility in its stock price, which has fluctuated from a high of $528 to a low of $120 in recent months. Over the past year, the stock has delivered a 68% return. Wilson-Thompson’s trades were carried out under a Rule 10b5-1 trading plan, which allows insiders to establish a prearranged schedule for stock sales, minimizing the risk of trading on non-public information.
Tesla’s Ongoing Market Activity and Challenges
Tesla’s stock performance continues to attract attention from both investors and analysts. While some analysts remain bullish, with firms like Stifel maintaining a Buy rating and raising their price target to $492, citing strong growth prospects, others are more cautious. New Street Research upgraded Tesla from Neutral to Buy, boosting its price target to $460 based on advancements in Tesla’s Full Self-Driving (FSD) technology and the anticipated launch of the lower-cost “Model 2.”
However, not all analysts are optimistic. Truist Securities lowered its price target on Tesla stock to $351 from $360, maintaining a Hold rating. This adjustment follows lower-than-expected production and delivery numbers in Tesla’s fourth-quarter results, although the firm maintains a stable outlook for the company.
In addition to its financial market activities, Tesla is under scrutiny by the National Highway Traffic Safety Administration (NHTSA) over its remote driving feature, Actually Smart Summon, which is linked to accidents in 2.6 million vehicles. The NHTSA investigation was prompted by concerns over insufficient user response times that could prevent collisions.
Further adding to the company’s challenges, Tesla’s lithium refinery in Texas, nearing completion, could require up to 8 million gallons of water daily. This has raised concerns among local residents about water supply, as a contract for the water remains unfinalized.
As Tesla continues to navigate a range of challenges, from regulatory scrutiny to fluctuating stock prices, investors and analysts will be keeping a close eye on its next steps, particularly the rollout of new products and technological advancements.
For in-depth analysis of Tesla’s financial performance and insider trading patterns, InvestingPro subscribers can access the detailed Pro Research Report.
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