Kimbal Musk, the younger brother of Elon Musk and a Tesla Inc. board member, sold $25.6 million of shares in the electric carmaker, according to a filing with the US Securities & Exchange Commission.
The 48-year-old sold 30,000 shares on Feb. 9 at an average price of $852.12, according to the filing. Tesla shares dropped 5.3 per cent Wednesday to close at $804.82. Tesla soared 743 per cent in 2020 and is up a further 14 per cent this year.
The transaction reduced his holding to 599,740 Tesla shares, which amounts to $483 million. Tesla insiders hold a 19.6 per cent stake in the company, according to data compiled by Bloomberg.
Board member Antonio Gracias meanwhile sold 150,747 Tesla shares, leaving him with a direct holding of 2,545. However, he replaced these with new long positions via long-dated call options, also known as Long-term Equity Anticipation Securities, better known as LEAPs. Gracias bought about 150,000 call options expiring in June 2022 and 2025 with exercise prices of $52.38 and $68.56. He also indirectly owns 1.3 million Tesla shares through AJG Growth Fund.
Kimbal Musk is chief executive officer and co-founder of The Kitchen Restaurant Group. Gracias is the founder and head of Valor Equity Partners.
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.