TESLA Share Price India: Musk may be about to sell some Tesla stock. How would that affect markets?
Even for Mr. Musk, who is worth well north of $200 billion, that’s a lot of cash to come up with. Most of his wealth is tied up in Tesla stock, and one of the most obvious ways to raise the money would be to sell some of those shares.
Given Tesla’s enormous market capitalization and its inclusion in major stock indexes, almost everybody with a 401(k) probably owns some Tesla stock. The potential for Mr. Musk to sell some of his holdings, and spend less time on Tesla as he shifts his focus to Twitter, has raised questions about the outlook for Tesla’s share price. The stock dived 12.2 percent on Tuesday, as the S&P 500 index fell 2.8 percent.
Tesla’s shares have lost about 20 percent of their value since Mr. Musk first revealed that he had bought a big stake in Twitter, kicking off takeover speculation. Jim Cramer, the frenetic host of CNBC’s “Mad Money,” accused Tesla of “hurting this market pretty badly.”
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TESLA Share Price India Has Musk sold off stock to fund his Twitter bid?
It’s too early to know. Such sales would have to be reported to the Securities and Exchange Commission, but those reports are not instantaneous. Sales can take a few days to be made public.(TESLA Share Price India)
What impact would sales by Musk have on Tesla’s share price?
Even a sale of a huge portion of Mr. Musk’s Tesla stock would be unlikely to affect Tesla’s share price for too long.
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Mr. Musk is Tesla’s biggest shareholder, holding about 17 percent of the company’s shares — about 175 million shares in total.
He would need to sell nearly 24 million shares at Tuesday’s price to generate $21 billion in cash. That’s about an average day’s trading volume for Tesla stock — a lot, but not enough to overwhelm the market. On Tuesday, about 45 million shares were bought and sold.
Mr. Musk’s financing package for Twitter also includes $12.5 billion in loans using his Tesla shares as collateral. If Tesla’s stock falls far enough, lenders would require Mr. Musk to add collateral to support the loans, potentially forcing him to sell more stock to come up with the cash.(TESLA Share Price India)https://www.riderongaming.com/2022/03/what-is-term-insurance.html
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Mr. Musk has sold off large tranches of Tesla’s stock before. Last year, he sold some 15 million shares, worth more than $16 billion, over two months. Those sales did not appear to measurably drive Tesla’s price down, though it’s unknowable whether the price would have gone up had he not been selling.
When Tesla’s stock drops, what happens to the rest of the market?
Tesla is a component in both the S&P 500 and the Nasdaq composite index. In addition to being barometers of how stocks in the United States are performing, both indexes are mirrored by numerous mutual funds that are invested in widely.
The S&P 500, considered the benchmark U.S. index, weights companies according to their market value. Tesla, which is worth about $900 billion, is one of the most influential stocks in the index.
For every dollar that Tesla’s stock dropped on Tuesday, the S&P 500 lost 0.099 points, according to Howard Silverblatt, a senior index analyst at S&P Dow Jones Indices. That means the drop in Tesla’s stock accounted for nearly a tenth of the S&P 500’s fall on Tuesday.
How Elon Musk Bought Twitter(TESLA Share Price India)
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A blockbuster deal. Elon Musk, the world’s wealthiest man, capped what seemed an improbable attempt by the famously mercurial billionaire to buy Twitter for roughly $44 billion. Here’s how the deal unfolded:(TESLA Share Price India)https://carmabrand.com/2022/04/bajaj-finance-share-price-2022bajaj-finance-share-price-target-2022/
The initial offer. Mr. Musk made an unsolicited bid worth more than $40 billion for the influential social network, saying that he wanted to make Twitter a private company and that he wanted people to be able to speak more freely on the service.(TESLA Share Price India)
The response. Twitter’s board countered Mr. Musk’s offer with a defense mechanism known as a “poison pill.” This well-worn corporate tactic makes a company less palatable to a potential acquirer by making it more expensive for them to buy shares above a certain threshold.(TESLA Share Price India)
Securing financing. Though his original offer had scant details and was received skeptically by Wall Street, Mr. Musk moved swiftly to secure commitments worth $46.5 billion to finance his bid, putting pressure on Twitter’s board to take his advances seriously.
Striking a deal. With the financing in place, Twitter’s board met with Mr. Musk to discuss his offer. The two sides soon reached a deal, with the social media company agreeing to sell itself for $54.20 a share.(TESLA Share Price India)
What’s next? Shareholders will vote on the offer, which will also be reviewed by regulators. The deal is expected to take three to six months to close. In the meantime, scrutiny is likely to be intense and several questions remain about Mr. Musk’s plans for the company.https://www.riderongaming.com/2022/03/what-is-term-insurance.html
“So it did have a very large impact,” Mr. Silverblatt said, but “not the highest.” Apple, with nearly three times the valuation of Tesla, has far more impact. Its stock’s drop of 3.7 percent on Tuesday contributed more to the overall index’s decline.
So why did Tesla’s stock fall?(TESLA Share Price India)
Tesla is a famously volatile stock. Tuesday’s 12.2 percent fall was its worst daily decline since Sept. 8, 2020, when it shed about 21 percent of its value. But in the past six months, Tesla shares have twice fallen nearly 12 percent, on Nov. 9 and Jan. 27.https://carmabrand.com/2022/04/bajaj-finance-share-price-2022bajaj-finance-share-price-target-2022/
Some — including Mr. Musk at times — have suggested that Tesla is overvalued. Among those who believe in Tesla’s valuation, which is much higher than rival automakers’ relative to the size of its operations, a lot of the argument depends on Mr. Musk’s stewardship. Even Tesla acknowledges this, stating as a risk in its most recent quaterly report: “We are highly dependent on the services of Elon Musk, techno-king of Tesla and our chief executive officer. Although Mr. Musk spends significant time with Tesla and is highly active in our management, he does not devote his full time and attention to Tesla.”( Tesla share price India)
A lot about Mr. Musk’s plan to buy Twitter is unknown, including how involved he would be. “Tesla investors are worried that Musk might spend too much time trying to fix the social media giant(TESLA Share Price India)’s problems and that will take away his laserlike focus” on Tesla, said Edward Moya, a senior market analyst at OANDA.( tesla share priced in india)
Or as Mr. Silverblatt put it: “It’s anticipation of something that hasn’t occurred yet. It will be a while before we know anything.”
How To Invest In Tesla (TSLA) Stock From India?(TESLA Share Price India)
Looking to invest in Tesla stock (TSLA) from India? This blog will help you. Find out how you can buy Tesla shares directly from India for as low as $1.March 28, 2022
Tesla is one of the best companies in the luxury automobile & clean energy space. Truth be told, Tesla has carved a niche for itself in the high-end Electric Vehicle (EV) space with exceptional design & state of the art features.
Some of their cars look like they are straight out of a sci-fi movie! What’s more? The TSLA stock has seen a year to date increase of more than $330! But should you invest in a stock that is preferred mainly due to the cult following of its owner? Let’s take a look at the facts & figures around Tesla Inc.
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Tesla is not just a vehicle manufacturer or a clean energy company. It is a brand built around the value of innovation & research with the nuanced business leadership of Elon Musk.
Musk’s stellar track record of building businesses such as Zip2 Corporation, PayPal, SpaceX, The Boring Company, Hyperloop, and others can be a solid proposition for investors looking to buy TSLA stocks.
Top 10 Tesla Inc. (TSLA) Products(TESLA Share Price India)
- Model S
- Model 3
- Model X
- Model Y
- Solar Roof
Apart from this, Tesla is investing heaving in R&D and has vehicle service centres, supercharger stations and self-driving cars. Tesla’s automotive sales represent most of the company’s total revenue.
Tesla Inc. (TSLA) Stock Information At A Glance(TESLA Share Price India)
- Stock Name: Tesla, Inc. (TSLA)
- Share Price: $1,067.95*
- Market Cap: $1.072 Trillion
- Beta: 2.01
- P/E Ratio: 348.78
- 52 Week Low: $401.66
- 52 Week High: $1,243.49
Fun Fact: Tesla recently became a part of the S&P 500 US Index.
Historical Performance Of TSLA Stock(TESLA Share Price India)
Tesla launched its IPO in 2010. There were 13.3 million TSLA shares up for sale at $17 per share.
TSLA has a market cap of approximately $757 Billion. This makes Tesla the world’s largest automobile manufacturer by a fair distance since its market cap dwarfs its competitors: (TESLA Share Price India)
- Toyota Motor Corp. (TM) $194.616B
- Honda Motor Co. (HMC) $47.869B
- General Motors Co. (GM) $58.956B
Top 10 Tesla Inc. (TSLA) Products
- Model S
- Model 3
- Model X
- Model Y
- Solar Roof
Apart from this, Tesla is investing heaving in R&D and has vehicle service centres, supercharger stations and self-driving cars. Tesla’s automotive sales represented 80% of the company’s total revenue for Q3 2020.(TESLA Share Price India)
7 Benefits Of Buying TSLA Stock(TESLA Share Price India)
- A 5th consecutive quarter of profitability.
- 400% year to date growth of TSLA shares.
- Strong backing from millennial & retail investors.
- Recent 5-for-1 stock split.
- 140,000 vehicles manufactured in Q3. A 44% increase compared to 2019.
- Total revenue of $8.77 billion. 39% year over year increase.
- Free cash flow of $1.4 billion.
Cons Of Buying TSLA Stock(TESLA Share Price India)
- The negative press surrounding Elon Musk.
- Missed manufacturing deadlines.
- Reputable traders’ recommendation of shorting the stock.
How To Buy Tesla (TSLA) Stock From India?
Long story short, yes you can buy Tesla stock from India in two ways that are direct and indirect. The first way is to buy the Tesla stock yourself using a brokerage account.
There are Indian apps like Cube that allow you to buy US stocks and you’ll have to go through the KYC flow and the LRS process to be able to buy TSLA shares. The RBI allows Indian citizens to invest up to $250,000 through the Liberalized Remittance Scheme.
On to the next way that’s indirect, through mutual funds. International mutual funds are equity funds that invest in shares of foreign companies like Tesla, Microsoft, and others.
Investing in these international mutual funds will allow you to gain exposure to Tesla stock indirectly with no upper limit to the amount you can invest. Here’s an example of these international mutual funds as handpicked by Cube’s advisor Wealth First on the Cube Wealth app:
- Franklin India Feeder – Franklin U.S. Opportunities Fund
- Motilal Oswal S&P 500 Index Fund
So… Should You Buy TSLA Stock?(TESLA Share Price India)
Banking on a company built on the underlying principle of innovation and design can be a tempting proposition. At the same time, the historical returns indicate that the TSLA stock has done well.
But some experts cite the presence of Elon Musk as the primary reason for Tesla’s continued growth. If that’s the general consensus then Elon Musk’s controversial comments & actions can pose a threat to investors who have bought TSLA shares.
Historical growth & benefits seem to indicate that TSLA is a good bet. But factors such as your risk appetite, investment goals, financial health, and more can determine whether you should invest in TSLA stocks.
Interested in other US stocks? Check out our blogs on:
1. FB Stock
2. AMZN stock
3. GOOG stock
4. BABA stock
Q. Can I buy Tesla stock directly from India?(TESLA Share Price India)
Yes, you can buy Tesla stock from India directly. You can download an investment app that allows you to buy US stocks. Check for existing users reviews and app usability before making a decision. Once you’ve decided on what app to use, you’ll have to go through the KYC process mandated by the app and then the RBI’s Liberalised Remittance Scheme (LRS) flow. After that, you can transfer money to your brokerage account and invest in Tesla stock from India.
Q. What’s the best way to buy Tesla stock?
Investors are generally know to buy Tesla stock from India using an investment app like Cube. On one hand, the process is comfortable and on the other, you’ll be able to track the movement of your Tesla stock investment in one place. There are few things that you’ll need to remember before investing in Tesla stock from India. The RBI’s LRS allows you to invest up to $250,000 in the US per financial year. Along with you, even your bank should be LRS compliant. India and the US have a Double Taxation Avoidance Agreement (DTAA), which means you won’t have to pay taxes in both India and the US.
*Note: All facts & figures are as of 11-11-2021. While we update our blogs regularly, check out the Cube Wealth app for detailed facts & figures. Historical performance does not guarantee future success. Please consult a Cube Wealth Coach or enroll for our US Advisory Service, before investing your hard-earned money into any stocks.
Here’s how US stock advice works on the Cube Wealth app