New Delhi: Electric carmaker, Tesla’s shares witnessed a sharp decline after its co-founder and CEO Elon Musk’s younger brother and a Tesla Inc board member, Kimbal Musk, on February 9 decided to sell $25.6 million of shares, according to a filing with the US Securities & Exchange Commission.
The 48-year-old sold 30,000 shares on Tuesday at an average price of $852.12, that reportedly dropped Tesla’s share 5.3% on Wednesday thus closing at $804.82. To note, Tesla shares saw 743% growth in 2020 and is up a further 14% this year.
The transaction, meanwhile, has reduced his holding to 599,740 Tesla shares, which amounts to $483 million. Tesla insiders hold a 19.6% stake in the company, according to Bloomberg’s data.
Furthermore, one of the founders and board member Antonio Gracias also sold 150,747 Tesla shares, leaving him with a direct holding of 2,545. However, he replaced these with new long positions through long-dated call options, also known as Long-term Equity Anticipation Securities or LEAPs.
As per reports, head of Valor Equity Partners Gracias bought about 150,000 call options expiring in June 2022 and 2025 with exercise prices of $52.38 and $68.56, respectively. He also indirectly owns 1.3 million Tesla shares through AJG Growth Fund.
Elon’s younger brother, Kimbal Musk is chief executive officer and co-founder of ‘The Kitchen Restaurant Group’.