Members of Congress buying and selling stocks has been a hot topic, and one member of Congress made a sizable bet on electric vehicle company Tesla Inc TSLA in late 2020 that could be paying off nicely.
What Happened: In January, it was disclosed that Speaker of the House and California Rep. Nancy Pelosi or her spouse made a sizable investment in Tesla call options.
A filing revealed that Pelosi bought 25 call options in Tesla on Dec. 22. The call options have a strike price of $500 and an expiration of March 18, 2022.
The disclosure listed a purchase price of $500,000 to $1,000,000 for the call options.
It was also noted that the purchase could have been made by Pelosi’s husband Paul Pelosi, who runs a venture capital firm.
Members of Congress have to disclose stock transactions within 45 days and it has not been revealed whether Pelosi sold the Tesla position yet.
Other stocks purchased by Pelosi in 2021 that have been disclosed include AllianceBernstein Holding AB, Apple Inc AAPL, Walt Disney Company DIS, Amazon.com Inc AMZN, NVIDIA Corp NVDA and Alphabet Inc GOOG GOOGL.
Tesla Calls Today: Shares of Tesla have risen significantly since Pelosi’s purchase. TSLA shares were trading at around $640 at the time of the purchase.
Tesla shares trade at $1,059.25 today, up around 65%.
The rise in valuation for Tesla shares has significantly increased the wealth of Tesla CEO Elon Musk, who recently become wealthier than Bill Gates and Warren Buffett combined. The rise in Tesla's shares has also increased Pelosi's wealth and could be worth more than her Congressional salary.
Pelosi’s calls are listed with a price of $569.78 each. With each call option representing 100 shares of TSLA, the options have a value of $56,978 each.
The 25 call options are worth $1,424,450 at the time of writing, marking a nice return for Pelosi over the last 10 months.
TSLA Price Action: TSLA shares were up 3.15% at $1,070.60 midday Thursday.
Photo via AFGE on Wikimedia.
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