Elon Musk blasts Tesla short sellers after Tuberville stock disclosure: âGluttons for punishmentâ
Some stock disclosures by Alabama Sen. Tommy Tuberville drew the attention of billionaire Elon Musk on his social media platform X.
On Thursday, Musk, the owner of Tesla, the electric vehicle company, replied to a post on X regarding a stock disclosure by Tuberville.
According to NASDAQ, Tuberville on Thursday disclosed a series of October stock transactions.
Tuberville bought three lots of Tesla put options and sold all of the Tesla shares he held on October 17.
Tesla stock was on a downward trend after the company reported its third quarter results on October 18, before rebounding in November.
The Alabama senator bought three tranches of put options, each amounting to $1,001-$15,000, with a strike price of $190 and an expiration date of Dec. 15, 2023.
A put option is seen as, in essence, a bet that stock prices will go lower. It gives a holder the right, but not the obligation, to sell a specified amount of an underlying security at a specified price within a certain time frame, and can become profitable when the value of the security declines. It is used to ensure that losses do not exceed a certain amount.
This disclosure drew Musk’s attention.
“They’re gluttons for punishment,” Musk said in a post.
According to The Dales Report, the practice of short selling stock is something Musk has been critical of in the past.
In this year’s biography of Musk by Walter Isaacson, he was quoted calling short sellers “leeches on the neck of businesses.” He has also criticized Bill Gates for short selling Tesla.