Three Tesla insiders, including Elon Musk’s own brother, are preparing to sell about $300 million worth of Tesla stock (TSLA).

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

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

At the current price of ~$260 per share, Denholm’s planned potential sale of Tesla’s stock would be worth $175 million.

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

Denholm only owned 85,000 Tesla shares at the time of her last report, but as the disclosure notes, 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 more than $700 million in cash and stock.

Electrek’s Take

It’s crazy that they had to give back more than $700 million, yet three of them can still sell about $300 million worth of stock.

It’s also important to note that this situation also plays into the ongoing legal battle over Elon’s CEO compensation. A judge finds it unlawful because, among other things, he was in charge of the board when the deal was “negotiated”.

At the same time they gave Elon’s $44 billion package, they also gave themselves this excessive executive compensation.