Tesla, America’s biggest electric car company saw its stock rally yesterday, after trading below the $1,000 trading zone, as a result of the recent sell-off of Tesla shares by CEO, Elon Musk.

After Musk sold off approximately $5 billion worth of shares (about 4.5 million shares) as of Thursday last week, a filing last week Friday revealed that the electric car maker sold another 1.2 million shares of Tesla stock. In a filing yesterday, it was revealed that the SpaceX boss sold 934,091 shares after exercising options to buy 2.1 million stocks at $6.24 each. This brings his total sales so far to a total of about 7.3 million Tesla shares for a grand total of $7.8 billion.

This caused the share price of Tesla to drop below the $1,000 trading range to trade for as low as $978.60 on Monday. However, the bulls took the day as the stock currently trades $1,048, up 3.42% for the day, as of the time of this writing.

What you should know

Tesla was not the only electric car company to rally as the entire sector followed the same trend. Other electric car manufacturers like Rivian Automotive and Lucid Group, rallied alongside Tesla, up 9.15% and 19.03% respectively.

Rivian’s stock price rally means that electric vehicle (EV) maker share price is now up over 100% since its initial public offer last Wednesday, putting its market capitalization at $139.04 billion as of the time of this writing. The stock briefly overtook Volkswagen, making the company the world’s third most valuable carmaker.

Lucid also surged after it revealed that its reservations for its cars rose to 13,000 in the third quarter and said it is confident it will produce 20,000 of its upcoming Lucid Air sedans in 2022. As of the time of this writing, its market capitalization currently stands at $83 billion, making it more valuable than Ford.

The total sale by the Tesla boss fulfils almost half of his pledge on Twitter to sell 10% of his stake in Tesla.

Craig Erlam, Senior Market Economist at OANDA stated, “There’s still plenty of buying interest because I still think ultimately, investors are viewing this as a phase and viewing pullbacks as an opportunity. If you ask me where the share price is going to be six months from now, 12 months from now? I’d say it’s more likely to be 20% higher than 20% lower.”