Two Tesla board members near Elon Musk, Ira Ehrenpreis and Kimbal Musk, simply offered nearly $200 million value of Tesla (TSLA) shares.
Tesla board members are identified for his or her beneficiant inventory compensation and for rapidly promoting it when it vests.
They settled a lawsuit introduced by shareholders who alleged they have been overcompensated, and they agreed to return almost $1 billion in compensation.
Even with returning the extreme compensation, Tesla’s chairwoman is by far the best-compensated board member of any main public firm.
These days, she has been liquidating her shares in Tesla and she or he just isn’t the one board member promoting.
Final night time, Tesla reported that Ira Ehrenpreis, a longtime buddy and financier of Tesla CEO Elon Musk who sits on the automaker’s board, offered 477,572 shares value over $162 million.
Ehrenpreis’ time period on the board ends this yr. He has been on the board for nearly 20 years. He was, and nonetheless is, on the compensation committee that granted Musk’s controversial 2018 CEO compensation plan value $55 billion.
Together with Ehrenpreis, Tesla additionally disclosed that Kimball Musk, Elon’s brother and longtime Tesla board member, offered 91,588 shares value greater than $32 million.
Electrek’s Take
Isn’t it unusual that the board would promote lots of of thousands and thousands of {dollars} value of shares simply weeks and months forward of launching an autonomous ride-hailing service, which is meant to usher in a brand new period of development for Tesla?
It’s nearly as in the event that they don’t even imagine it.
And sure, it’s true that a few of these gross sales by board members have been made below beforehand adopted plans, however these plans are opaque and we don’t know what leeway board members have inside the plans.
However we do know, within the case of Ehrenpreis, that his plan was adopted only a few months in the past in December when Tesla’s inventory surged following Trump’s election. It appears like he was searching for a approach out, and he likes the present stage.
I believe the board is aware of that Tesla is dealing with unimaginable legal responsibility over its failed guarantees on self-driving and that the rollout in Austin subsequent month is extra for present than something.
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