Tesla (NASDAQ: TSLA) released its Q4 and full-year 2024 earnings report on January 29, with it marking the first time the automaker saw a year-over-year (YoY) decline in vehicle deliveries.
While deliveries did stay strong at nearly 4,900 vehicles a day, the quarter also saw a double miss, with both earnings per share (EPS) and revenues coming in below consensus estimates.
In the aftermath of the release, Tesla stock saw a 3.9% rally, but it was short-lived. The bears soon took control, short volume skyrocketed, and a downward trajectory took hold.
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At press time on February 11, a single TSLA share could be had for as little as $349.37. On a year-to-date basis, the stock has lost 13.49% in value and was trading at pre-December levels by the time of publication.
During the first 10 days of the year, company insiders dumped roughly $44 million worth of TSLA stock. By early February, that number had nearly doubled through chairwoman Robyn Denholm’s $43 million sale.
Now, Finbold’s insider trading radar has picked up yet another sale from an SEC Form 4 filing made public on February 10.
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This signal is triggered upon the reporting of the trade to the Securities and Exchange Commission (SEC).
Kimbal Musk dumps $27.3 million worth of Tesla stock
To be more specific, this time around, the seller was Elon Musk’s brother, Kimbal, who also sits on the company’s board of directors. The younger Musk brother executed two transactions on February 6— one encompassed 74,077 TSLA shares, the other just 923 units of Tesla stock.
Once all is said and done, Kimbal Musk dumped 75,000 Tesla shares — worth a combined total of $27.34 million. With this latest sale, Tesla insiders have dumped $114.3 million worth of the electric vehicle (EV) maker’s stock since the beginning of 2025.
Interestingly enough, the trade stands out in one regard. Most of the insiders we’ve discussed execute their trades according to 10b5-1 plans. In other words, they arrange them in advance— with the most commonly cited reason behind the sales being the orderly disposal of employee stock options.
However, Kimbal Musk didn’t make his latest sale according to such a plan. While trades like these are perfectly legal, they tend to attract more oversight and scrutiny from regulators.
In any case, the transactions encompassed a minor part of Kimbal Musk’s holdings — as he continues to control 1,463,220 units of Tesla stock following the sale. With that being said, the rate of insider selling occurring at the carmaker does raise questions regarding short and medium-term prospects.
While many Wall Street analysts see a substantial upside, most of their theses are based on emerging technologies, like full self-driving (FSD) and robotics, where Tesla’s leadership is far from a foregone conclusion. In the meantime, quarterly misses and delivery numbers have led others to predict that the stock will implode in 2025.
Featured image via Shutterstock
