Tesla Insiders Plan to Sell $300 Million of Stock

Dow Jones10-29

Three Tesla insiders have adopted trading plans that are set to sell $300 million of stock, based on a recent market price.

Tesla Chair Robyn Denholm and directors Kathleen Wilson-Thompson and Kimbal Musk, Elon’s brother, adopted so-called Rule 10b5-1 plans to sell a total of 1.13 million shares of the electric-vehicle maker.

Such plans are used by company insiders to remove the appearance of bias from knowledge of nonpublic information. The plans automatically execute transactions when preset conditions such as price, volume, and timing are met. Tesla disclosed the adoption of the plans in a form it filed with the Securities and Exchange Commission.

Denholm adopted a plan on July 25 to sell up to 674,345 shares, and it expires June 18, 2025. Wilson-Thompson adopted her plan Aug. 12 to sell up to 300,000 shares, and it expires Feb. 28, 2025. Kimbal Musk adopted a plan July 31 to sell up to 152,088 shares, and it expires May 30, 2025.

Based on Monday’s close at $262.51, the three insiders could sell up to $296 million of stock.

Tesla didn’t immediately respond to a request to make the three available for comment.

None of the plans have executed sales yet.

Denholm last sold Tesla stock on July 25 when she acquired 136,364 shares through options set to expire August 2024, and sold 66,364 shares for $14.6 million, an average price of $219.96 each. Those sales were executed by a plan, but not her current plan, which will sell shares acquired from options expiring in June 2025. Denholm, an operating partner of venture-capital firm Blackbird Ventures of Surry Hills, NSW, Australia, has been a Tesla director since 2014, and chair since 2018.

Wilson-Thompson last sold Tesla stock in September 2022 when her plan acquired 26,250 shares from options, and sold an equal number of shares for $7.3 million, an average price of $278.93 each. A Tesla director since 2018, Wilson-Thompson retired in 2021 as executive vice president and global chief human resources officer of Walgreens Boots Alliance.

Kimbal Musk last sold Tesla stock in April 2023 when his plan acquired 100,000 shares through options, and sold an equal number of shares for $19.6 million, an average price of $278.93 each. A Tesla director since 2004, Kimbal Musk is co-founder and executive chairman of The Kitchen Restaurant Group, a family of restaurant concepts.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

  • a4xrbj1
    10-30
    a4xrbj1
    All paid extremely well to let Elon do whatever he wants. That's so against what function a BoD has and Tesla stockholders think it's perfectly ok as you can see from the last voting where Kimbal and one other Director were once again confirmed for the Board!
  • RustyBeastie
    10-30
    RustyBeastie
    We are going down again
  • zack v6
    10-29
    zack v6
    So does this mean the price gonna drop again or go higher?
  • FGP
    10-29
    FGP
    Thank you to all investors🤩
Leave a comment
4
3