Tesla Stock Rises. Musk's Share Overhang Is Back in Focus

This article first appeared on GuruFocus.

Tesla (NASDAQ:TSLA) shares rose about 0.7% on Monday as investors weighed a fresh SEC filing covering roughly 304 million shares tied to Elon Musk’s 2018 pay package and a slower-than-expected robotaxi rollout.

The filing does not mean Musk is selling shares right away. It would allow the stock to become freely tradable once options are exercised, and those options expire in early 2028. Analysts said any future exercise could add volatility because part of the proceeds may be used to cover taxes.

Tesla’s recent earnings added to the pressure. Elon Musk struck a more cautious tone on robotaxis last week, saying the rollout would likely remain gradual before expanding further, which left some investors waiting for clearer signs of execution.

The stock has also faced broader concern about demand after the end of the U.S. $7,500 EV tax credit and rising spending on artificial intelligence and robotics. Tesla’s shares were down about 16% for 2026 even after a gain of roughly 32% over the past 12 months