Pierre Ferragu, managing partner of New Street Research, discusses Elon Musk to become the richest person in the world and the future of Tesla.
The man of the house, Nancy Pelosi, has a bet of up to $ 1 million on the future of Tesla Inc. placed under the Biden administration, which is expected to provide incentives to buy more environmentally friendly electric vehicles.
Pelosi, as speaker of the House, is likely to have insights into Biden’s plans for the industry, which are expected to include tax credits and other incentives to promote the relocation of traditional cars.
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“The disclosure forms clearly indicate that these investments were made by Mr. Paul Pelosi and not the Speaker,” a spokesman for Speaker Pelosi’s office said in a statement to FOX Business. The letters “SP” listed under owner indicate that the purchases were made by a spouse.
Paul Pelosi, who runs a real estate and venture capital investment and consulting firm in San Francisco, has not violated any laws by making the purchases, as these types of transactions occur regularly.
Spouses of members of Congress may own shares in companies in industries of which they may help significant others to regulate, but in terms of the STOCK ACT, they may not trade in public information. The same is true of the members of Congress themselves.
Paul Pelosi did not immediately respond to FOX Business’ request for comment.
‘The problem is that there are many things that any congressman can do behind the scenes to positively influence Tesla [shares], such as stopping legislation and submitting legislation, ”said Aaron Hill, a professor of management at the University of Florida. “A lot of this is only documented in committee meetings, so it creates the fear of double or decidedly conflicting interests.”
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Paul Pelosi bought 25 call options that cost between $ 500,000 and $ 1 million, according to a January 21 financial statement reviewed by FOX Business. The options, bought on December 22, give Paul Pelosi the right, but not the obligation, to buy up to 2,500 Tesla shares at a price of $ 500 each before it expires on March 18, 2022.
The deal was the first in Telsa to be announced by Nancy Pelosi, and it did so at least in 2013.
| Ticker | Safety | Last | Alter | Alter% |
|---|---|---|---|---|
| TSLA | TESLA INC. | 872.88 | +26.24 | + 3.10% |
Tesla shares rose $ 846.64 a share on Friday, meaning they are above the strike price, or ‘in-the-money’, and that Paul Pelosi can exercise them as long as it stays above $ 500.
In addition to buying Tesla options, Nancy Pelosi, a California Democrat, also announced that Paul has 100 Apple Inc. call options worth up to $ 500,000 and 100 Walt Disney Co. call options worth as much as $ 1 million bought. Pelsoi has previously announced activities in these companies. She also revealed a 20,000 stake in financial services firm AllianceBernstein Holding.
| Ticker | Safety | Last | Alter | Alter% |
|---|---|---|---|---|
| AAPL | APPLE INC. | 142.39 | +3.32 | + 2.39% |
| DIS | WALT DISNEY COMPANY | 171.40 | -1.35 | -0.78% |
| AB | ALLIANCEBERNSTEIN HOLDING | 36.59 | +0.55 | + 1.53% |
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Nancy Pelosi is not the only member of Congress investigating their financial transactions.
Federal prosecutors earlier this year investigated four senators who themselves or their spouses sold investments before the S&P 500 crashed by 34% in February and March in anticipation of the economic damage the COVID-19 pandemic would cause.
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The Department of Justice has since dropped its investigation into the actions taken by Sens Richard Burr, RN.C., Dianne Feinstein, D-California, Jim Inhofe, R-Okla, and former Senator Kelly Loeffler, R-Ga or their significant other.
“As a nation, we really need to be concerned about this. “There are enough political vitriols and that is just one more thing to possibly divide our country,” Hill said. “It’s easy to eliminate.”