Tesla Motors Inc CEO Musk’s Brother Buys Shares For Under $10
Tesla Motors Inc (NASDAQ: TSLA) CEO Elon isn’t the only Musk on the company’s board. His brother Kimball also owns a substantial share of the business, and he’s just bought more at an incredibly low price. According to a file filed with the Security and Trade Commission Wednesday Kimbal Musk bought 3,666 Tesla Motors shares for just under $ 10.00 per share.
Shares of Palo Atlo, Calif., The electric car maker ended the day trading at $ on Tuesday.232.95 which means Kimbal Musk made $ 817,481 on that single trade, however, that wasn’t the only change the executive made to its shareholding on Tuesday.
Kimball Musk buys Tesla
What Mr. Musk did on May 1 might seem a bit absurd at first, but it’s a perfectly normal process for company directors and other staff who tend to receive compensation in stock options. rather than cash directly. Kimbal Musk held 16,666 “Options” to buy Tesla Motors shares at a price of $ 9.96 yesterday morning.
At the end of the day, he cashed in 3,666, leaving him 13,000 more rights to buy shares in the company at that price. For shareholders forced to shell out over $ 200 a share in order to release the company’s earnings report, due to arrive after the market closes on Wednesday, it may seem unfair, but the $ 800,000 is what Mr. Musk for his service to Tesla Motors, Inc.
In a complicated series of transactions all filed on Wednesday but completed on May 1, Kimbal began with 152,324 actions in Tesla and finished with the same number of shares of the company. Zip2 co-founder and current board member of Tesla Motors and Space bought 3,666 shares at $ 9.96 and used a second set of options to buy 2,735.00 at $ 28.43.
Kimbal Musk sold shares in the following groups: 922.00 at $ 225.99, $ 700.00 to $ 225,053, 1,300 to $224.32, 900 to $ 223,005, 1079 to $ 222,081 and 1500 to 221,061. That’s a grand total of $1,429,437,279 in full day product. Kimbal then spent $ 36,513.36 on the first set of options and $ 77,756.05 on the second set of options. This brings his net gain for the day to $ 1,315,167,869, not bad for a single day on the market.
Tesla Motors is stepping up a gear
Yesterday’s actions by Elon Musk’s brother were a form of insider selling, but not one that could get him in trouble. Kimbal maintained his holdings in electric car maker Model S throughout the day, even though his brother’s business slips to an income report which could seriously damage the value of the company’s stock.
After the market closed on Wednesday, analysts expect Tesla Motors to post losses of 51 cents a share on earnings of $ 1.04 billion by consensus. These numbers are well below where they were six months ago, but analysts are not changing their minds on the company.
There is great confidence in what Jim Cramer calls the Tesla story. Stifel analyst James Albertine has a price target of $ 400 on Tesla Motors shares, while Deutsche Bank’s Rod Lache is looking for $ 245 for the auto sector alone. This seems likely to protect Kimbal Musk’s actions for a while.