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

Such plans fall under the Informational Buy/Sell transactions of corporate insiders. These transactions are made public to keep the other investors informed of insiders’ planned stock sales, which could also affect the company’s stock price. The plans are executed automatically based on preset conditions, including volume, price and timing.

More about the planned stock sale by TSLA Insiders

Tesla reported the planned stock sale in its latest 10-Q filing. Denholm plans to sell up to 674,345 shares of TSLA stock 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 ordinary shares of the EV king. 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 informational sales transactions worth $14.6 million executed in the last three months.

It is important to monitor the informational activities of business insiders, given their knowledge of a company’s growth potential. Interestingly, TipRanks offers daily insider trades as well as a list of top business insiders. It also provides a list of popular stocks that have a very positive or positive insider confidence signal.

Is Tesla stock a buy?

Wall Street remains skeptical of Tesla stock despite healthy earnings reported for the third quarter of FY24. On TipRanks, TSLA stock has a Hold consensus rating based on 11 Buys, 16 Holds, and eight Sell ratings. Additionally, the average Tesla price target of $207.83 implies a 20.8% downside potential from current levels. Year to date, TSLA shares are up 5.6%.

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