Insider trading: Tesla insiders plan to sell shares worth $300 million

According to regulatory filings, electric vehicle maker Tesla (TSLA) company insiders plan to sell $300 million worth of its common stock in the coming months. Three Tesla board members, namely Chairwoman Robyn Denholm, CEO Elon Musk's brother Kimbal Musk and Kathleen Wilson-Thompson, have all filed for a trading agreement under Rule 10b5-1 to sell shares with expiration dates in the first half of 2025. These sales result from the expiration of stock options and are subject to certain conditions.

Such plans fall under the informational buy/sell trades of company insiders. These trades are made public to keep other investors informed about planned stock sales by insiders, which could also affect the company's stock price. Plans are automatically executed based on preset conditions including volume, price and timing.

More about the planned share sale from TSLA Insiders

Tesla reported the planned stock sale in its latest 10-Q filing. Denholm is expected to sell up to 674,345 TSLA shares on or before June 18, 2025. Musk's brother has signed to sell up to 152,088 TSLA shares with an expiration date of May 30, 2025. Meanwhile, Wilson-Thompson plans to sell up to 300,000 shares by February 28, 2025.

In total, the three board members will sell 1,126,433 EV King common shares. At the current Tesla share price of $262.51, this results in a total sales price of $295.70 million.

A closer look at Tesla's insider transactions

TSLA stock currently has a Negative Insider Confidence signal on TipRanks based on $14.6 million worth of informative sales transactions completed over the past three months.

Given their knowledge of a company's growth potential, it is important to keep an eye on the informative trades of company insiders. Interestingly, TipRanks provides daily insider transactions as well as a list of top company insiders. It also provides a list of hot stocks that have either a very positive or a positive insider confidence signal.

Is Tesla stock a buy?

Wall Street remains skeptical about Tesla shares despite reporting a strong profit increase for the third quarter of fiscal 2024. On TipRanks, TSLA stock has a Hold consensus rating based on 11 Buy, 16 Hold, and eight Sell ratings. Additionally, the average Tesla price target of $207.83 implies a downside potential of 20.8% from current levels. Year-to-date, TSLA shares have gained 5.6%.

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