Elon Musk's Brother Sold $20M Of Tesla Stock This Week: Should It Matter For Investors?

Tesla, Inc. TSLA CEO Elon Musk’s brother, Kimbal Musk, on Monday, sold 100,000 shares of the electric vehicle maker in a series of transactions.

What Happened: Kimbal Musk’s sale was pursuant to the exercise of stock options based on the SEC Rule 10b5-1 trading plan he adopted on Dec. 8, 2022. The exercise price was $24.73.

Since the date of the earliest transaction and the reporting data were both April 3, all the 100,000 shares were sold on the same day. Tesla settled Monday’s session down 6.12% at $194.77 following the release of its quarterly deliveries.

The weighted-average stock price for the 11 transactions that Kimbal Musk made is around $195.74 and the sale proceeds fetched him $19.57 million.

See Also: Everything You Need To Know About Tesla Stock

Why It Matters: These options vested as part of the 2018 award and following the conversion, the shares were sold based on a previously agreed upon SEC trading plan. Corporate executives usually sell while exercising stock options to meet tax expenses related to the option grant.

Even after Monday’s sale, Kimbal Musk still holds 1,608,720 shares of Tesla.

Meanwhile, Tesla bear Gordon Johnson had a different take on the sale. In a note to investors, he pointed to data from Insidercrow.com that may not go down well with Tesla investors.

The last time Kimbal Musk sold shares worth $108.8 million over a six-month period starting Nov 5, 2021, Gordon said Tesla's share price was cut in half, from $407 to $209.

Tesla stock closed Wednesday’s session at $185.52, down 3.67%, according to Benzinga Pro data.

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Photo by Kimbal Musk on Wikimedia.