Tesla CEO Makes $2.24B Stock Purchase

It was revealed in a recent SEC filing that Elon Musk, CEO at Tesla (NASDAQ:TSLA) made a noteworthy insider purchase on August 4,.

What Happened: In a Form 4 filing on Monday with the U.S. Securities and Exchange Commission, it was disclosed that Musk bought 96,000,000 shares of Tesla, amounting to a total of $2,240,640,000.

In the Tuesday's morning session, Tesla's shares are currently trading at $306.05, experiencing a down of 1.04%.

Get to Know Tesla Better

Tesla is a vertically integrated battery electric vehicle automaker and developer of autonomous driving software. 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 more affordable vehicles, 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.

A Deep Dive into Tesla's Financials

Revenue Growth: Tesla's revenue growth over a period of 3 months has faced challenges. As of 30 June, 2025, the company experienced a revenue decline of approximately -11.78%. This indicates a decrease in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Consumer Discretionary sector.

Navigating Financial Profits:

• Gross Margin: The company maintains a high gross margin of 17.24%, indicating strong cost management and profitability compared to its peers.

• Earnings per Share (EPS): Tesla's EPS is below the industry average, signaling challenges in bottom-line performance with a current EPS of 0.36.

Debt Management: Tesla's debt-to-equity ratio is below the industry average at 0.17, reflecting a lower dependency on debt financing and a more conservative financial approach.

Analyzing Market Valuation:

• Price to Earnings (P/E) Ratio: Tesla's current Price to Earnings (P/E) ratio of 184.08 is higher than the industry average, indicating that the stock may be overvalued according to market sentiment.

• Price to Sales (P/S) Ratio: The current P/S ratio of 11.73 is above industry norms, reflecting an elevated valuation for Tesla's stock and potential overvaluation based on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): A high EV/EBITDA ratio of 71.91 positions the company as being more valued compared to industry benchmarks.

Market Capitalization Analysis: The company's market capitalization is above the industry average, indicating that it is relatively larger in size compared to peers. This may suggest a higher level of investor confidence and market recognition.

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Navigating the Impact of Insider Transactions on Investments

Insider transactions are not the sole determinant of investment choices, but they are a factor worth considering.

In legal terms, an "insider" refers to any officer, director, or beneficial owner of more than ten percent of a company's equity securities registered under Section 12 of the Securities Exchange Act of 1934. This can include executives in the c-suite and large hedge funds. These insiders are required to let the public know of their transactions via a Form 4 filing, which must be filed within two business days of the transaction.

When a company insider makes a new purchase, that is an indication that they expect the stock to rise.

Insider sells, on the other hand, can be made for a variety of reasons, and may not necessarily mean that the seller thinks the stock will go down.

Unlocking the Meaning of Transaction Codes

Navigating through the landscape of transactions, investors often prioritize those unfolding in the open market, precisely detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C signals 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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This article was generated by Benzinga's automated content engine and reviewed by an editor.