These three Tesla insiders, including Elon's own brother, are preparing to sell $300 million in TSLA stock

Three Tesla insiders, including Elon Musk's own brother, are preparing to sell Tesla shares (TSLA) worth around $300 million.

In Tesla's 10Q SEC filing, the automaker disclosed that three of its board members, including Chairman Robyn Denholm and Kimball Musk, the brother of CEO Elon Musk, signed new agreements to sell numerous shares last quarter:

• On July 25, 2024, Robyn Denholm, one of our directors, entered into a trading agreement pursuant to Rule 10b5-1 for the potential sale of up to 674,345 shares of our common stock (all from stock options expiring in June 2025), subject to certain conditions. The expiration date of the agreement is June 18, 2025.
• On July 31, 2024, Kimbal Musk, one of our directors, entered into a trading agreement pursuant to Rule 10b5-1 for the potential sale of up to 152,088 shares of our common stock, subject to certain conditions. The expiration date of the agreement is May 30, 2025.
• On August 12, 2024, Kathleen Wilson-Thompson, one of our directors, entered into a trading agreement pursuant to Rule 10b5-1 for the potential sale of up to 300,000 shares of our common stock, subject to certain conditions. The expiration date of the agreement is February 28, 2025.

At the current price of about $260 per share, Denholm's proposed potential sale of Tesla shares would be worth $175 million.

Kimball Musk's 152,000 shares would be worth just under $40 million, while Wilson-Thompson's agreement would allow her to sell for about $78 million.

Denholm only held 85,000 Tesla shares at the time of her last report, but as stated in the disclosure, she exercises stock options.

Tesla board members received excessive compensation from shareholders, according to a lawsuit.

Last year, Tesla board members settled the lawsuit by agreeing to return over $700 million in cash and stock.

Electrek's take

It's crazy that they had to return over $700 million, but three of them can still sell about $300 million worth of stock.

It's also important to note that this situation also plays a role in the ongoing legal battle over Elon's CEO compensation. A judge believes it was illegal because, among other things, he had control of the board when the deal was “negotiated.”

At the same time that they awarded Elon's $44 billion package, they also granted themselves that inflated executive compensation.