Did the Tesla boss’s brother know that Elon Musk would send Telsa shares on a downward slide with his Twitter post?
(Photo: Reuters)
new York According to stock market records, Tesla board member Kimbal Musk sold 88,500 of his Telsa shares on Friday. He got an average of $ 1,229.91 per share – a package worth $ 109 million. That corresponds to about 15 percent of his Tesla shares.
The time of the sale is striking: Exactly one day later, Kimbal Musk’s brother, Tesla boss Elon Musk, started a survey on Twitter that led to price losses at the electric car manufacturer on the next trading day. In the survey, the Tesla CEO had his 63 million followers on Twitter vote on whether he should sell ten percent of his Telsa shares. A total of 3.5 million users took part, almost 58 percent were in favor of a sale.
“Lately there has been a lot of talk about unrealized profits as a means of tax avoidance,” wrote the richest person in the world on Saturday evening. “So I propose to sell ten percent of my Tesla shares.” Musk promised to stick to the results of the survey. Ten percent of its Tesla shares would be worth around $ 21 billion, depending on the price. He would then have to pay taxes for these profits.
On the Monday after the survey, Tesla shares fell by up to seven percent in the meantime, and on Tuesday there was a further loss of 12 percent. This is the biggest two-day loss for Tesla since March.
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Price capers through Musk’s Twitter messages led to proceedings by the US stock exchange regulator, including a fraud suit, three years ago. At that time, the company Tesla was obliged to control Musk’s communications through a committee.
The trained chef Kimbal Musk is, like his brother, an innovative entrepreneur. He is CEO of the Kitchen Restaurant Group and co-founder of Square Roots Urban Growers. He has been a member of the Tesla Board of Directors since 2004 and also has a senior position in Elon Musk’s space company SpaceX. His fortune is estimated by the Bloomberg Billionaires Index at around 950 million.
More: Why shareholders are not reacting more strongly to Elon Musk’s stock sale