Tesla (TSLA) insider trading: James Murdoch, a friend of Elon Musk, recently sold $13 million in stock
Tesla board member and friend of CEO Elon Musk, James Murdoch, has confirmed that he recently sold approximately $13 million worth of Tesla stock. This decision comes amidst a significant decline in Tesla’s stock price.
Insider trading activities have been prevalent at Tesla, with many high-profile figures selling shares in the company. Notably, Kimball Musk, Elon’s brother, and Tesla’s Chief Financial Officer Taneja Vaibhav have also recently divested their holdings ahead of a decline in Tesla’s stock value. In addition to them, Tesla’s chairwoman, Robyn Denholm, sold $33 million worth of Tesla shares last week and over $100 million in the past three months.
James Murdoch, appointed to Tesla’s board in 2017, reported selling 54,776 Tesla shares for just over $13 million today as the stock experienced a 15% drop. This decline marks a significant decrease from Tesla’s previous all-time high, with the stock now down more than 50%.
Murdoch, widely known as the son of media magnate Rupert Murdoch and a former CEO of 21st Century Fox, was involved in a settlement with Tesla related to overcompensation, requiring him to return almost $1 billion in cash and stock options to the company.
The trend of Tesla insiders selling off their shares is alarming. While only certain insiders are obligated to report their stock transactions, it remains uncertain how many other top executives within Tesla are divesting shares amid the ongoing correction. This issue highlights Tesla’s questionable corporate governance practices, with specific key figures within the company not even listed amongst top executives.
Overall, transparency regarding insider trading at Tesla remains a concern, and the situation underscores the company’s governance issues. The sale of Tesla stock by high-ranking individuals, including board members and top executives, raises questions about the company’s internal dynamics and financial stability. As Tesla’s stock continues to face significant fluctuations, the repercussions of these insider trading activities are yet to be fully understood in the broader context of the electric vehicle industry and financial market.