Joseph Gebbia, a director at Tesla Motors (TSLA), recently bought 4,000 shares. The buy increased his stake by nearly 4,000%, and came to a total cost of $1,025,232.
This marks the first insider buy at Tesla over the past two years. Typically, Tesla insiders are sellers of shares, including both the exercise of stock options and traditional sales. Sellers over the past year include the company CFO and several Senior Vice Presidents.
Overall, Tesla insiders own 12.9% of shares.
The electric vehicle manufacturer has been on a wild ride over the past year, with shares still up 56% over the past 12 months.
EV sales have slowed, and rising uncertainty from tariffs and trade fears are likely to keep weighing on sales. Tesla has never fit into conventional valuation, with shares trading at 130 times earnings, a massive premium to other automakers.
Action to take: While Tesla’s fundamentals leave investors with little clues, shares are in a base area under $300 and could be on track for a move higher in the months ahead. Investors could see a push back to $400 this year, for a return of over 25%.
For traders, the August $370 calls, last trading for about $15.25, could see high double-digit returns from a push higher over the coming months.
Disclosure: The author of this article has no position in the company mentioned here, but may further trade after the next 72 hours. The author receives no compensation from any company mentioned in this article.