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Kimbal Musk cashed out $109 million of Tesla stock just before Elon's tweets whacked the share price

Nov 9, 2021, 18:12 IST
Business Insider
Kimbal Musk (left) is the brother of Tesla CEO Elon Musk (right). Axelle/Bauer-Griffin/FilmMagic/Hannibal Hanschke Pool/Getty
  • Kimbal Musk sold around $109 million of Tesla stock a day before his brother Elon posted a tweet that knocked the share price.
  • Elon asked his Twitter fans whether he should sell 10% of his Tesla holdings, worth around $21 billion.
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Tesla board member Kimbal Musk sold around $109 million of the electric-car maker's stock shortly before his brother Elon knocked the share price by asking Twitter if he should sell a big chunk of his holdings.

Kimbal, an entrepreneur who sits on Tesla's board of directors, made a number of transactions on Friday according to a Securities and Exchange Commission filing.

He exercised his stock options to buy 25,000 shares at just $74.17 a pop. Kimbal then sold 88,500 shares in a number of tranches at an average price of around $1,230, making him roughly $108.9 million.

Elon's younger brother also donated 25,000 shares - which closed at $1,222.09 on Friday - to charity.

The flurry of transactions came a day before Tesla CEO Elon took to Twitter to ask his more than 60 million followers whether he should sell 10% of his holdings in the company, which would amount to around $21 billion in value.

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After Elon's followers voted "yes", the stock fell as much as 7% on Monday before closing almost 5% lower at $1,162. It was trading about 1.5% higher at $1,179 in premarket Tuesday.

Analysts said Musk likely faces a large tax bill north of $10 billion from stock options he was awarded in 2012, which have since soared in price. The Tesla boss has previously said he's likely to sell a large amount of stock before the end of the year.

Read more: Morgan Stanley says these 9 stocks are its top picks from a portfolio of market-beating ideas that's crushed the S&P 500 for 3 years

Kimbal has not been the only director to take advantage of the Tesla's blistering rally, which has seen the stock price rise around 1,600% over the last two years.

Filings from the end of October showed that directors Ira Ehrenpreis, Robyn Denholm and Antonio Gracias sold shares worth hundreds of millions of dollars.

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Elon Musk, Kimbal Musk and other top figures at Tesla have seen their personal wealth soar as a result of the stock-market rally. Investors, flush with cash as a result of government and central bank stimulus, have bet that Tesla will lead the green revolution in transport.

Elon is now by far the richest person in the world, with a total net worth of $323 billion, according to the Bloomberg Billionaires Index, up $154 billion this year.

Tesla did not immediately respond to Insider's request for comment on Kimbal's share sale.

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