Tesla board members dump nearly $200 million in shares just before robotaxi launch – should investors worry?
Details of Tesla's Insider Sales
The two board members are;
Ira Ehrenpreis
, who is the founder of venture capital firm DBL Partners, and
Kimbal Musk
, who is the brother of Tesla CEO Elon Musk and a long-time board member, have recently sold some of their Tesla stocks, reported Benzinga.
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Sales Were Pre-Planned Under Rule 10b5-1
While, both of their sales were under
Rule 10b5-1 plans
, which are pre-approved and based on provisions such as time and/or the price of the stock, according to the report.
Ehrenpreis filed Form 144 for the sale of 477,572
Tesla shares worth
about $162.1 million and even Kimbal filed Form 144 for the sale of 91,588 Tesla shares worth about $31.1 million, reported Benzinga.
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According to an Electrek report, Ehrenpreis' term on the Tesla board will end this year and the sale of his stocks might have been a way of exiting his position.
Why the Timing Still Feels Off
Ehrenpreis' Rule 10b5-1 plan was adopted in December 2024 and Kimbal's was adopted in July 2024, as reported by Benzinga. According to the report, the Rule 10b5-1 plan is less than a year old and might have been put into place based on the timeline of current and future Tesla catalysts, including the launch of robotaxis in Texas.
As per the Electrek report, "The timing of the sales ahead of the robotaxi launch could instil less confidence in investors."
FAQs
Why are Tesla board members selling stock now?
They sold stock under pre-planned agreements, but the timing, right before a major product launch, has made some investors uneasy.
Who sold Tesla stock recently?
Ira Ehrenpreis and Kimbal Musk, both members of Tesla's board, sold nearly $200 million worth of shares, as per Benzinga report.
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