A significant insider buy by Elon Musk, CEO at Tesla (NASDAQ:TSLA), was executed on November 10, and reported in the recent SEC filing.
What Happened: A Form 4 filing from the U.S. Securities and Exchange Commission on Monday showed that Musk purchased 423,743,904 shares of Tesla. The total transaction amounted to $141,568,600,887.
During Tuesday’s morning session, Tesla shares down by 1.25%, currently priced at $439.65.
About Tesla
Tesla is a vertically integrated battery electric vehicle automaker and developer of real world artificial intelligence software, which includes autonomous driving and humanoid robots. The company has multiple vehicles in its fleet, which include luxury and midsize sedans, crossover SUVs, a light truck, and a semi truck. Tesla also plans to begin selling a sports car and offer a robotaxi service. Global deliveries in 2024 were a little below 1.8 million vehicles. The company sells batteries for stationary storage for residential and commercial properties including utilities and solar panels and solar roofs for energy generation. Tesla also owns a fast-charging network and an auto insurance business.
Understanding the Numbers: Tesla’s Finances
Revenue Growth: Tesla displayed positive results in 3 months. As of 30 September, 2025, the company achieved a solid revenue growth rate of approximately 11.57%. This indicates a notable increase in the company’s top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Consumer Discretionary sector.
Evaluating Earnings Performance:
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Gross Margin: The company faces challenges with a low gross margin of 17.99%, suggesting potential difficulties in cost control and profitability compared to its peers.
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Earnings per Share (EPS): Tesla’s EPS lags behind the industry average, indicating concerns and potential challenges with a current EPS of 0.43.
Debt Management: Tesla’s debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.17.
Evaluating Valuation:
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Price to Earnings (P/E) Ratio: The current Price to Earnings ratio of 307.06 is higher than the industry average, indicating the stock is priced at a premium level according to the market sentiment.
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Price to Sales (P/S) Ratio: With a relatively high Price to Sales ratio of 16.4 as compared to the industry average, the stock might be considered overvalued based on sales performance.
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EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With an EV/EBITDA ratio of 112.01, the company’s market valuation exceeds industry averages.
Market Capitalization: Surpassing industry standards, the company’s market capitalization asserts its dominance in terms of size, suggesting a robust market position.
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Why Insider Transactions Are Key in Investment Decisions
Insider transactions, although significant, should be considered within the larger context of market analysis and trends.
From a legal standpoint, the term “insider” pertains to any officer, director, or beneficial owner holding more than ten percent of a company’s equity securities as outlined in Section 12 of the Securities Exchange Act of 1934. This encompasses executives in the c-suite and significant hedge funds. These insiders are mandated to inform the public of their transactions through a Form 4 filing, to be submitted within two business days of the transaction.
A company insider’s new purchase is a indicator of their positive anticipation for a rise in the stock.
While insider sells may not necessarily reflect a bearish view and can be motivated by various factors.
Breaking Down the Significance of Transaction Codes
Surveying the realm of stock transactions, investors often give prominence to those unfolding in the open market, systematically detailed in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C denotes the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.
Check Out The Full List Of Tesla’s Insider Trades.
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