Kimbal Musk, Elon’s younger brother, made more than $7 million trading Tesla Inc.’s stock, as he acquired shares through options and sold them the same day at an average price that was $600 higher than what he paid for them.
In a Form 4 filing with the Securities and Exchange Commission late Monday, Tesla disclosed that Kimbal, who is on the electric vehicle maker’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 Kimbal sold 12,000 shares in the open market at a weighted average price of $675.856, according to a MarketWatch calculation of the 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 back on May 19, 2020.
inched up 0.1% on Tuesday to $691.41 in recent afternoon trading, after running up 4.4% on Monday. Year to date, the stock has slipped 2.0% while the S&P 500 index
has gained 8.6%.
Kimbal’s on April 1 stock sales were made through a series of trades, at prices ranging from $660.113 to $691.35. On that day, the stock rallied as much as 3.7% to an intraday high of $692.42 soon after the open, before reversing course to fall as much as 1.3% to an intraday low of $659.42, before settling to close down 0.9% at $661.75.
He still owned 599,740 common shares of Tesla after the stock sales, which at current prices were valued at about $414.7 million. He also beneficially owned options to buy 197,250 shares.
Kimbal has been pretty good at picking near-term tops in Tesla’s stock in recent months. The last time he sold shares was on Feb. 9, at a weighted average price of $852.117. The stock closed that day at $849.46, and has closed below that level ever since.
Before that, Kimbal sold shares on Sept. 1, and that marked the high for the stock for about 2 1/2 months.