Tesla (NASDAQ: TSLA) is experiencing notable insider trading activity, as two high-profile company insiders have filed notices for significant stock transactions.
On May 27, Kimbal Musk, brother of CEO Elon Musk and a member of Tesla’s board, filed to exercise stock options for 91,588 common shares of Tesla stock.
The transaction carried out through J.P. Morgan Securities is valued at approximately $31.1 million based on current market prices, according to SEC filings.
At the same time, Ira Ehrenpreis, another Tesla board director and an early investor, submitted a separate Form 144 to sell 477,572 shares of common stock. This sale is estimated at around $162.06 million, making it one of the largest insider transactions by a Tesla director in recent memory.
Kimbal Musk’s increased TSLA share sales
It’s worth noting that Musk has been consistently offloading Tesla shares in recent months amid the company’s struggles with declining vehicle sales, increasing competition, and growing consumer backlash.
For instance, in February, he sold 75,000 shares, netting nearly $27.6 million at an average price of $367.87 per share.
Similarly, in November 2024, the board member sold 60,500 TSLA shares for approximately $15.1 million, averaging about $250 per share.
While insider filings like these are relatively common and don’t always signal negative sentiment, the scale and timing of these high-value transactions will likely attract market scrutiny.
TSLA stock price analysis
These sales have come as Tesla’s stock rallies despite weakening fundamentals. TSLA closed the last market session up 7% at $362, gaining 26% over the past month.
This upward momentum follows mixed news for the automaker. According to the European Automobile Manufacturers’ Association, Tesla’s new car registrations in the region dropped 53% year-over-year in April, with just 5,475 units sold.
The disappointing data was somewhat offset by Musk’s announcement that he plans to spend more time directly managing the Texas-based electric vehicle (EV) company.
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