Investor Gary Black of The Future Fund LLC has expressed doubts that Elon Musk is selling Tesla Inc. shares. This speculation arose after Tesla’s stock price dropped by $40 despite a strong delivery report. Black argues that company lawyers would not allow insider sales during Tesla’s blackout window before second-quarter earnings.
Black’s Argument
Black stated, “I don’t believe it’s Elon selling. Even with a 10b5-1 plan, I doubt the lawyers would allow him to sell in the blackout window which generally starts two weeks before the quarter closes and ends the day after earnings.” A 10b5-1 plan is a prearranged trading plan that can allow executives to buy or sell stock automatically under preset conditions, even during restricted periods, if the plan meets legal requirements.
Tesla’s Delivery Report
Tesla reported delivering 480,126 vehicles between April and June, exceeding the forecast of 406,000 units. Despite this strong performance, the stock still fell by more than 7% on the day. Black attributed this to “selling the news,” noting that Tesla shares had rallied in anticipation of a strong report.
Market Focus on AI and Earnings
The market remains focused on artificial intelligence and robotaxis, which delivery figures alone do not validate. Tesla’s broader story increasingly rests on more than vehicle deliveries, with its Megapack energy storage business and FSD (Full Self-Driving) technology being closely watched.
Upcoming Earnings Report
Tesla is scheduled to report second-quarter earnings on July 22, 2026. Analysts expect earnings of 42 cents per share on revenue of $24.61 billion.
Price Action
Tesla stock closed at $393.45, down 7.49%, and added 0.24% to $394.40 in after-hours trading.
Expert Insights
Other experts, such as Gene Munster, managing partner at Deepwater Asset Management, have offered similar explanations for the stock’s drop. Munster described the reaction as a likely “buy on the rumor, sell on the news” response after the stock’s strong run ahead of the report.
Conclusion
The debate surrounding Elon Musk’s potential sale of Tesla stock continues, with experts weighing in on the likelihood of such a sale during the blackout window. As Tesla prepares to report its second-quarter earnings, investors will be closely watching the company’s performance and the impact of its AI and energy storage businesses on its valuation.