Sections

ideals
Business Essentials for Professionals



Tesla’s Stock Rally Results In Windfall For Current And Former Board Members Via Share Sale


10/30/2021


Tesla’s Stock Rally Results In Windfall For Current And Former Board Members Via Share Sale
According to filings with the United States Securities and Exchange Commission (SEC), shares worth more than $200 million were recently sold by Tesla Inc board member Ira Ehrenpreis as the price of the stock surged past the $1,000 mark for the first time to reach a new high.
 
According to the regulatory filings, a plan to sell $610 million worth of stock on the same day was also submitted to a former Tesla board member whose term ended earlier this month.
 
Following a contract with rental vehicle firm Hertz and the biggest every quarterly sale revenues and profits, the United States based electric vehicle maker Tesla won the coveted accolade of being the sixth company to reach the trillion-dollar threshold last Monday.
 
According to documents with the US SEC, Tesla’s independent director Ehrenpreis exercised options to acquire 370,000 shares at a price of around $50 a share earlier this week, before they expire in June next year.
 
Following that 203,429 shares at a share price of $1,068.38 each were sold by the venture capitalist, who has been sitting on the board of directors of Tesla since May 2007.
 
According to the filing with the SEC, his intentions to sell 338,493 shares worth $351 million and another 250,000 shares for $259 million that he controls indirectly through AJG Growth Fund was filed by Gracias, the CEO of private equity company Valor.
 
Before his tenure expired in October, he had been a member of the Tesla board since May 2007. He is also a director of SpaceX, the company founded and owned by Tesla co-founder Elon Musk, and was a director of SolarCity until it was acquired by Tesla in 2016. He is a close friend of Tesla CEO Elon Musk.
 
With a huge number of stocks and stock options at their behest, the current and former board members of the electric vehicle company, including Musk himself, stand to make large profits from the astounding stock price rise of the company at the stock exchange. 
 
(Source:www.investing.com)