Kimbal Musk, brother of Elon Musk and a board member of Tesla Inc., has sold over $25 million worth of Tesla shares, according to a recent SEC filing.
What Happened
Kimbal Musk, known for his regular trading activities, sold 56,820 shares of Tesla common stock on December 9. The shares were traded at a weighted average price of $450.66, with individual transactions ranging from $450.44 to $450.90, totaling approximately $25.6 million.
Details of the Transaction
- Number of shares sold: 56,820
- Weighted average price: $450.66
- Total value: approximately $25.6 million
- Individual transaction prices: $450.44 to $450.90
Donation to Donor-Advised Fund
The SEC filing also disclosed that Kimbal donated 15,242 shares to a donor-advised fund. Based on the execution price of the sold shares, this donation is valued at around $6.8 million.
Kimbal’s Remaining Stake in Tesla
Despite these transactions, Kimbal still holds a significant stake in Tesla, with 1,376,373 shares held directly.
Why It Matters
The sale comes amid a surge in Tesla’s stock price, providing an opportune moment for Kimbal to cash in. His donation to the donor-advised fund is a common practice, allowing him to claim the tax deduction for the charitable contribution immediately while distributing the funds to specific charities over time.
Strategic Approach
This move demonstrates Kimbal’s strategic approach to managing his significant stake in Tesla, balancing personal gain with philanthropic efforts. Kimbal is recognized for his accurate predictions on Tesla’s stock performance, with Tesla’s current price-to-earnings ratio exceeding 300.