Three Tesla insiders, including Elon Musk's own brother, are preparing to sell $300 million worth of Tesla (TSLA) shares.
In Tesla's 10Q SEC filing, the automaker disclosed that three members of its board, including chairman Robyn Denholm and Kimball Musk, CEO Elon Musk's brother, signed new plans to sell more shares last quarter:
- On July 25, 2024, Robyn Denholm, one of our directors, accepted a Rule 10b5-1 trading plan to purchase up to 674,345 shares of our common stock (all resulting from stock options expiring in June 2025), subject to other things. circumstances. The expiration date of this program is June 18, 2025.
- On July 31, 2024, Kimbal Musk, one of our directors, accepted a Rule 10b5-1 trading plan to purchase up to 152,088 shares of our common stock, subject to certain conditions. The expiry date of this program is 30 May 2025.
- On August 12, 2024, Kathleen Wilson-Thompson, one of our directors, accepted a Rule 10b5-1 trading plan to purchase up to 300,000 shares of our common stock, subject to certain conditions. The expiration date of this program is February 28, 2025.
At the current price of ~$260 per share, Denholm's potential sale of Tesla stock would be worth $175 million.
Kimball Musk's 152,000 shares would be worth $40 million, and the Wilson-Thompson arrangement would allow him to sell about $78 million.
Denholm only owned 85,000 Tesla shares as of his last report, but as the disclosure shows, he exercises stock options.
Tesla's board members received excessive compensation from shareholders, according to the lawsuit.
Last year, Tesla's board members settled the lawsuit by agreeing to return more than $700 million in cash and stock.
Electrek's Take
It's unfortunate that they had to pay back over $700 million, yet three of them still sold $300 million worth of stock.
It's also important to note that this situation also plays into the ongoing legal battle over Elon's CEO compensation. The judge found it illegal because, among other reasons, he was in charge of the board when the deal was “negotiated.”
At the same time they gave Elon a $44 billion package, they also gave themselves this excessive board compensation.
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