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yesterday

Tesla Directors Sell Nearly $200 Million in Shares Ahead of Jack Hartung’s Board Entry

Reflecting exercised options linked to a settlement over alleged board overcompensation, the transactions fuel fresh scrutiny of Tesla governance.

Kimbal Musk is one of two Tesla insiders that sold tens of millions of dollars worth of stock on Tuesday.

Overview

  • Ira Ehrenpreis and Kimbal Musk exercised options and sold a combined 569,160 shares for nearly $200 million, according to SEC filings.
  • Chairwoman Robyn Denholm liquidated about $76 million in Tesla stock under a prearranged trading plan since February.
  • Some investors speculate the sales are tied to a Police & Fire Retirement System of Detroit lawsuit settlement over board compensation.
  • Tesla’s share price has jumped roughly 25% in the past three months and more than doubled over the past year.
  • Former Chipotle CFO Jack Hartung is set to join Tesla’s board on June 1 as the company seeks to bolster its corporate governance.