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CEO Buys June 9, 2011: Tesla Motors

June 09, 2011 | About:


CEO and10% owner of Tesla Motors Inc. (TSLA) Elon Musk bought 1,416,000 shares of the company on 06/08/2011, at an average price of $28.76. The total transaction amount was $40,724,160.

Tesla Motors Inc. designs, develops, manufactures and sells electric vehicles and advanced electric vehicle power train components. It offers Tesla Roadster, an electric sports car. The company markets and sells its vehicles directly to consumers through the phone and Internet, as well as through its network of Tesla stores. It operates 18 Tesla stores located in Boulder, Chicago, Los Angeles, and other cities worldwide. The company was founded in 2003 and is headquartered in Palo Alto, Calif.

Elon Musk is an engineer and entrepreneur. He co-founded Paypal, SpaceX and Telsa motors, and is currently CEO and CTO of SpaceX, CEO of Telsa Motors and Chairman of SolarCity. He developed the first viable production electric car of the modern era, the Telsa Roadster. Tesla Motors is known for being the only automaker to sell a zero-emissions sports car. It was founded by two independent teams, with one member being Elon Musk, who later took control and managed the company’s operations. He received the Global Green 2006 product design award for his work with the Roadster.

In 2010, Telsa went public on NASDAQ under the symbol TSLA, being the first American car making company to go public since Ford Motor Company (F) in 1956.

Tesla Motors recently reported its first quarter 2011 results. The company announced that its results in the quarter included an increase from 136% in total revenues year over year, to $49.0 million. The company said that it was designing their second vehicle to be sold, the Model S, as well as introducing the Tesla Roadster 2.5 on July 1, 2010, an upgraded version of its original Roadster model introduced in 2008. Its automotive sales revenues increased 63% from results reported the first quarter of 2010, although a net loss of $48.94 million was still reported for the quarter, compared to a net loss of $29.52 million a year ago.

Tesla has also begun to take reservations in Canada on orders of the Model S. The company said that deliveries would begin in the middle of 2010. The Model S is renowned as the first premium electric sedan in the world, and is expected to have a base price of USD $57,400. Aside from its reservations in Canada, it has also taken about 2,000 reservations for the new car in North America and Europe. The car is expected to be sold worldwide.

Sell: CFO Deepak Ahuja sold 5,000 shares of TSLA stock on 05/31/2011 at the average price of $30. Deepak Ahuja owns at least 500 shares after this. The price of the stock has decreased by 9.6% since. Other insiders have also decreased their positions in the company.

John Griffin owns 575,000 shares as of 03/31/2011, which accounts for 0.27% of the $5.92 billion portfolio of Blue Ridge Capital. gives Tesla Motors a predictability rating of 1 star. We also have put the stock “On Watch,” due to its negative profit. The company does not pay dividends, and has a P/S ratio of 22.2.

Rating: 3.0/5 (6 votes)


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