Today we are looking at some recent insider activity at Tesla (NASDAQ: TSLA).
Tesla is an electric vehicle and clean energy company based in Silicon Valley traded on the NASDAQ and the company’s market capitalization is approximately $1.16 trillion.
As one of the largest tech companies in the world, Tesla receives a lot of interest from Capitol Hill politicians for investment and 2iQ recently reported on a wave of politicians moving money around in relation to Tesla. In addition to this, in the background, some insiders have sold a large number of shares.
Tesla: Insider Selling
Kimbal Musk, Director of Tesla, sold 88,500 shares on November 5, 2021, at a price of $1,229.91 per share. This trade amounted to around $108.15 million in value, with the shares sold accounting for roughly 15% of Kimbal Musk’s holding.
Unlike some of the other recent insider trades involving Tesla board members, Kimbal’s selling was not listed as a planned sale.
This is a very significant sale, not just for its large value, but also for Kimbal’s interesting timing. His trading activity comes near to that of his brother Elon Musk, CEO of Tesla.
On November 8, 2021, Elon Musk sold 934,000 TSLA shares at a price of around $1,162.94 per share. The value of this trade is roughly $1.1 billion. On November 15, 2021, Musk sold a further 934,000 shares at around $1,013.39, totaling around $930 million in value.
The Infamous Twitter Poll
Later in October, Elon Musk published a Twitter Poll, asking around 63 million users to vote whether or not he should sell 10% of his stake in Tesla. The coming Monday and Tuesday, Musk offloaded more than $7 billion worth of shares. This has been a mix of planned sales to prepare for future tax obligations and a series of unscheduled transactions.
This activity resulted in $TSLA taking a dive of more than 15% the same days, but the price rebounded later in the week.
Musk Under Scrutiny
When $TSLA’s Market Cap. crossed the $1 Trillion mark on October 2021, Musk was declared the world’s richest man at a net worth of more than $300 Billion. However, sources stated that Musk paid no federal income taxes in 2018, putting him in the eye of Senator Bernie Sanders, who proposed a 2% tax on the wealthiest Americans. Additionally, the UN Food Scarcity Organization’s Director declared that 2% of Elon Musk’s wealth could solve the world’s hunger crisis. Musk, in turn, responded to this by asking UN Director to draw up a real plan that would practically solve the crisis, totally dismissing the idea of paying taxes like every other middle-class American citizen.
Musk’s SEC filings emphasized a crucial detail: The shares of common stock were sold solely to satisfy the reporting person’s tax obligations related to the exercise of stock options to purchase 2,113,761 shares as reported in the first of two Form 4s being filed by the Reporting Person relating to the same event.
At present, it is believable that Kimbal’s sales preceding Elon’s was an intelligent move on the former’s part. Kimbal readily predicted the market frenzy that followed his brother’s actions, just as we continue to monitor Tesla’s Insider Activity.
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