Although Elon Musk’s sale is his first Tesla stock sale since 2016, Kimbal Musk has been selling his stock regularly. The same is true for many other executives and board members of the world’s most valuable car manufacturer.
Leave money on the table
Many insider trading is to diversify their holdings, and may not necessarily predict the direction of the stock. For Tesla insiders, diversification is not necessarily the best strategy.
Daniel Ives, a technical analyst at Wedbush Securities, said: “The irony is that they left hundreds of millions of dollars by selling early.”
Kimbal Musk’s sales
Since October 2019, Kimbal Musk has sold 525,00 shares after the split adjustment, and therefore received US$189 million, with an average price of US$360 per share. If he still owns all these shares, their current value will be $369 million higher than the value he received. The number of shares he holds will be more than twice what he currently holds.
Some of Kimbal Musk’s sales are carried out using the “Rule 10b5-1 Trading Plan,” an SEC rule that allows company insiders to sell shares on a pre-arranged timetable so that they will not be charged with the company. The news while trading. He also sold some stocks that did not mention such plans.
Since that sale, Tesla’s stock has made up for this loss, when his stock was sold at an average price of $852. They are now trading at more than $1,000, even though his brother’s stock sales have caused a decline recently.
Last week, Kimbal Musk’s sales before his brother started selling shares did not mention the Rule 10b5-1 trading plan.
Zachary Kirkhorn’s sales
Almost all of Kirkhorn’s sales were made through the rule 10b5-1 planned transaction, although the company made some additional sales to cover the withholding tax he owed on the exercise of stock options, which was part of his compensation.
In most months, he sold 750 to 1,250 shares on a split adjustment basis. In the past two years, 25,250 shares have been sold at an average price of $503 per share, which is about half of the current value. This brought him $12.7 million.
Robin Danhome Sales
Denholm did not mention any trading plans in the documents of the past two years. On the basis of the split adjustment, she sold nearly 412,000 shares of Tesla, making her 5,000 shares of Tesla the same as before the stock price began to rise two years ago.
The stock she holds comes from the exercise of stock options, and the cost of these stock options is only a small part of her market value, generating a profit of $200 million. She would do better if she held the stocks she acquired and sold immediately, which are worth $438 million.
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