Tesla Board Member Sold $25.61M In Company Stock

On December 12, a recent SEC filing unveiled that Musk Kimbal, Board Member at Tesla (NASDAQ:TSLA) made an insider sell.

What Happened: Kimbal's recent move involves selling 56,820 shares of Tesla. This information is documented in a Form 4 filing with the U.S. Securities and Exchange Commission on Friday. The total value is $25,606,501.

The latest update on Friday morning shows Tesla shares up by 2.7%, trading at $458.94.

Discovering Tesla: A Closer Look

Tesla is a vertically integrated battery electric vehicle automaker and developer of real world artificial intelligence software, which includes autonomous driving and humanoid robots. The company has multiple vehicles in its fleet, which include luxury and midsize sedans, crossover SUVs, a light truck, and a semi truck. Tesla also plans to begin selling a sports car and offer a robotaxi service. Global deliveries in 2024 were a little below 1.8 million vehicles. The company sells batteries for stationary storage for residential and commercial properties including utilities and solar panels and solar roofs for energy generation. Tesla also owns a fast-charging network and an auto insurance business.

Breaking Down Tesla's Financial Performance

Revenue Growth: Tesla displayed positive results in 3 months. As of 30 September, 2025, the company achieved a solid revenue growth rate of approximately 11.57%. This indicates a notable increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Consumer Discretionary sector.

Holistic Profitability Examination:

• Gross Margin: The company excels with a remarkable gross margin of 17.99%, indicating superior cost efficiency and profitability compared to its industry peers.

• Earnings per Share (EPS): Tesla's EPS lags behind the industry average, indicating concerns and potential challenges with a current EPS of 0.43.

Debt Management: Tesla's debt-to-equity ratio is below the industry average at 0.17, reflecting a lower dependency on debt financing and a more conservative financial approach.

In-Depth Valuation Examination:

• Price to Earnings (P/E) Ratio: With a higher-than-average P/E ratio of 308.2, Tesla's stock is perceived as being overvalued in the market.

• Price to Sales (P/S) Ratio: The current P/S ratio of 16.47 is above industry norms, reflecting an elevated valuation for Tesla's stock and potential overvaluation based on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): A high EV/EBITDA ratio of 112.44 positions the company as being more valued compared to industry benchmarks.

Market Capitalization Highlights: Above the industry average, the company's market capitalization signifies a significant scale, indicating strong confidence and market prominence.

Now trade stocks online commission free with Charles Schwab, a trusted and complete investment firm.

Exploring the Significance of Insider Trading

It's important to note that insider transactions alone should not dictate investment decisions, but they can provide valuable insights.

In legal terms, an "insider" refers to any officer, director, or beneficial owner of more than ten percent of a company's equity securities registered under Section 12 of the Securities Exchange Act of 1934. This can include executives in the c-suite and large hedge funds. These insiders are required to let the public know of their transactions via a Form 4 filing, which must be filed within two business days of the transaction.

When a company insider makes a new purchase, that is an indication that they expect the stock to rise.

Insider sells, on the other hand, can be made for a variety of reasons, and may not necessarily mean that the seller thinks the stock will go down.

A Deep Dive into Insider Transaction Codes

When analyzing transactions, investors tend to focus on those in the open market, detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase,while S signifies a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of Tesla's Insider Trades.

Insider Buying Alert: Profit from C-Suite Moves

Benzinga Edge reveals every insider trade in real-time. Don't miss the next big stock move driven by insider confidence. Unlock this ultimate sentiment indicator now. Click here for access.

This article was generated by Benzinga's automated content engine and reviewed by an editor.