Industry observers have disclosed that it’s not just Elon Musk who has been selling Tesla’s stocks, but also some other top executives and board members.
Kimbal Musk, a Tesla board member is reported to have sold $108 million worth of his stock which represents about 15% of the company’s stock.
The company’s Chairman, Robyn Denholm is also reported to have been selling Tesla’s stocks regularly since she assumed the position in 2018. Each time she receives some shares as part of her compensation, she immediately sells off all the shares.
Tesla’s Chief Financial Officer, Zachary Kirkhorn, is also reported to have been selling his shares regularly. In the last two years, he has sold 25,250 shares, at an average price of $503 a share, or about half of their current value and that brought him $12.7 million.
Achieving a market value greater than the combined market cap of the largest automakers in the world, Elon Musk became the second richest person in the world with Tesla, the company he founded, shooting past the $1trillion mark in its market value. However, Musk made the headlines recently when he offloaded $5 Bilion worth of his share holding in Tesla.
Analysts explain that many insider sales are made to diversify holdings and do not necessarily dictate the direction of the stock but in Tesla’s case, diversifying isn’t really the best strategy.
They explained further that by selling early, board members have left hundreds of millions of dollars on the table.