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Kimbal Musk sells Tesla stock worth about $28 million as Elon's brother cashes in on rally since Trump's victory
Elon Musk's brother sold Tesla stock worth about $28 million in a single day, per a Securities and Exchange Commission filing published on Monday.
Kimbal Musk , a Tesla director, cashed in 75,000 shares of the electric vehicle company on Thursday. The latest disposals trimmed his stake by nearly 5%, to 1.46 million shares, worth about $514 million at Monday's close.
The Tesla CEO's younger brother cofounded the software company Zip2 with him in 1995 but has since focused on ventures including restaurants , urban farming, and outdoor classrooms.
Tesla shares have surged by almost 40% since the US election on November 5. Elon Musk helped Donald Trump win by spending more than $250 million in support of his campaign, speaking at his rallies, and marshaling his social media followers to vote for the former president.
Investors wagered that Elon Musk's role as a trusted advisor to the president and the head of the quasi-governmental Department of Government Efficiency would translate to light-touch regulation of his companies and supportive policies.
But Tesla shares have dropped by 13% this year even as the broader stock market has risen, fueling a nearly $40 billion decline in Elon Musk's net worth, per the Bloomberg Billionaires Index. He remains the world's richest person, with an estimated net worth of $395 billion — $142 billion more than that of his nearest rival, Mark Zuckerberg .
A Stifel analyst said in a recent note that Elon Musk's government work appeared to be souring consumers on the Tesla chief and his company, which could weigh on sales.
Elon Musk has long argued that Tesla is more than an automaker. He's touted its artificial intelligence efforts, arguing that they'd lead to huge profits from future products such as Optimus humanoid robots and fully self-driving vehicles.
Insider stock transactions are closely watched on Wall Street as they can indicate sentiment about a company. Directors' jettisoning shares could signal that they expect the company's share price to plunge and want to cash out before it does.
Insiders may sell stock for many reasons, including diversification, retirement planning, or a need for a lump sum to pay taxes or cover a large expense.
Read the original article on Business Insider