Tesla board member and brother of CEO Elon Musk, Kimbal, cashed out $17 million in stock after exercising options from December under a 10b5-1 plan.
Kimbal’s exercise price was $24.73, according to information obtained from an SEC filing. The plan allowed him to exercise options that were set to expire in June 2025, also allowing the Musk brother to acquire 100,000 shares at a price of $24.73, as the automaker’s stock is trading at around $180 at the time of writing.
The 100,000 shares that were obtained by Kimbal were sold at prices ranging from $192.78 and $202.64. After the sale, Kimbal Musk still holds over 1,600,000 shares and yielded over $17 million in proceeds.
The move is not uncommon for major stakeholders, as proceeds from these sales can be used for anything from covering taxes on capital gains, to a normal readjustment of funds and holdings in a portfolio. It is not necessarily an indication of Kimbal being done with Tesla and its stock, but more likely a personal financial move.
Based on comments by Kimbal made in recent memory, it is more than likely the latter of the two. In July of last year, Elon Musk’s brother made comments about Tesla that indicated he was more than supportive of the company, its mission, and what it is set to accomplish within the next few years.
“Tesla is just getting started,” Kimbal said last year. “I can’t wait for the next decade of awesome from my brother and his amazing team.” Kimbal made the comments after he exercised his option to purchase 25,000 shares in July, solidifying his position.
Kimbal Musk: Tesla is just getting started, will see “next decade of awesome”
Kimbal has been a board member at Tesla for years, and his position as an insider, which makes him aware of the company’s inner workings, allows him to use specific plans when it relates to stock.
His position also is the reason for using the 10b5-1 plan, which “permits major holders to sell a predetermined number of shares at a predetermined time.” It is usually used to avoid insider trading accusations, according to Investopedia.
Tesla stock has rebounded so far this year after a tough 2022. In 2023, it is up over 70 percent, and is trading at [stock price] at [time] on the East Coast.
Disclosure: Joey Klender is a TSLA Shareholder.
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