Kimbal Musk, Elon’s younger brother, made more than $ 7 million by trading Tesla Inc. shares by buying shares through options and selling them on the same day at an average price of $ 600 higher than he paid for them.
In a form 4 filed with the Securities and Exchange Commission on Monday night, Tesla revealed that Kimbal, who is on the electric vehicle manufacturer’s board of directors, exercised options to buy 12,000 common shares on April 1 at a price of $ 74.17 per share, for $ 890,040.00. Elon has been Tesla’s chief executive since October 2008.
On the same day, Tesla said that Kimbal sold 12,000 shares on the open market at a weighted average price of $ 675,856, according to a MarketWatch calculation from Form 4 data, to raise $ 8,110,149.46.
Net, Kimbal pocketed $ 7,220,109.46.
The company said the stock sales were part of a Rule 10b5-1 trading plan adopted by Kimbal on May 19, 2020.
The TSLA stock,
rose 0.1% on Tuesday, to $ 691.41 in the late afternoon trades, after rising 4.4% on Monday. Year-to-date, shares fell 2.0%, while the S&P 500 SPX index,
gained 8.6%.
Sales of Kimbal’s shares on April 1 were made through a series of trades, at prices ranging from $ 660,113 to $ 691.35. That day, the stock rose up 3.7% to an intraday high of $ 692.42 just after opening, before reversing the course to fall down 1.3% to an intraday low of $ 659.42 before closing. at 0.9% to $ 661.75.
He still owned 599,740 Tesla common shares after the sale of shares, which at current prices were valued at around $ 414.7 million. He also had options to purchase 197,250 shares.
FactSet, MarketWatch
Kimbal has been very good at picking the best short-term stocks at Tesla over the past few months. The last time he sold shares was on February 9, at a weighted average price of $ 852,117. The stock closed that day at $ 849.46 and has since closed below that level.
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Before that, Kimbal sold shares on September 1, which marked the rise in shares for about 2 and a half months.