Two major Tesla insiders have exercised tens of millions of dollars worth of stock options, pocketing the cash rather than holding on to the shares like CEO Elon Musk.
On Tuesday, the company published SEC filings proposing the sale of securities under trading plans by members of the board of directors estimated to be worth nearly $200 million. All stock converted from options were subsequently sold within that very same day.
Ehrenpreis is one of Tesla’s longest serving directors, having joined the board 18 years ago. He chairs the compensation committee tasked with proposing to shareholders a new pay package for their CEO.
Importantly, Tuesday’s transactions are no indication of concern over the current quarter as the timing was not of their own volition. The trades were executed under separate 10b5-1 plans arranged last year by Ehrenpreis and Musk.
The timing proved highly advantageous. The stock has rallied by more than 50% since April 22’s first-quarter earnings, when Musk pledged to dial back his time commitments with President Trump.
