As Tesla’s major executives and board members sell off their large-scale stock, controversy is spreading in the United States. The sell-off includes Robyn Denholm, Vaibhav Taneja, the company’s board chair, and Elon Musk’s brother, Kimbal Musk.
According to filings with the U.S. Securities and Exchange Commission (SEC), Taneja recently offloaded 7,000 Tesla shares for $2,681,770. Denholm also sold 112,390 shares at an average price of $384.04, recording a total sale price of $43,162,255.60.
Tesla explained that these sales are part of a stock option liquidation plan adopted last year. However, market concerns have intensified after it was revealed that Kimbal Musk, Elon Musk’s brother and a Tesla board member, also sold 75,000 shares through Morgan Stanley for $27.5 million.
In the U.S., key executives and board members of publicly traded companies are required to report insider trading to the SEC, and these transactions were disclosed in compliance with those regulations. As a result, many media outlets are concentrating on Tesla insiders’ consecutive stock sales, and some experts are drawing attention to problems with management trust and corporate governance at Tesla.
Executives and key board members selling their shares may be strategic, but shareholders will likely view it negatively. Given Tesla’s recent volatility, the market is watching whether this sale will result in a lack of trust in management or simply a stock option exercise.
