Options Movement At Tesla: Musk Kimbal Exercises Worth $61.20M

Musk Kimbal, Board Member at Tesla TSLA, reported a large exercise of company stock options on May 2, according to a new SEC filing.

What Happened: A Form 4 filing with the U.S. Securities and Exchange Commission on Friday revealed that Kimbal, Board Member at Tesla in the Consumer Discretionary sector, exercised stock options for 235,162 shares of TSLA stock. The exercise price of the options was $24.73 per share.

Tesla shares are trading, exhibiting up of 1.59% and priced at $284.97 during Friday's morning. This values Kimbal's 235,162 shares at $61,198,558.

Delving into Tesla's Background

Tesla is a vertically integrated battery electric vehicle automaker and developer of autonomous driving software. The company has multiple vehicles in its fleet, which include luxury and midsize sedans, crossover SUVs, a light truck, and a semi truck. Tesla also plans to begin selling more affordable vehicles, a sports car, and offer a robotaxi service. Global deliveries in 2024 were a little below 1.8 million vehicles. The company sells batteries for stationary storage for residential and commercial properties including utilities and solar panels and solar roofs for energy generation. Tesla also owns a fast-charging network.

Financial Insights: Tesla

Decline in Revenue: Over the 3 months period, Tesla faced challenges, resulting in a decline of approximately -9.23% in revenue growth as of 31 March, 2025. This signifies a reduction in the company's top-line earnings. When compared to others in the Consumer Discretionary sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Analyzing Profitability Metrics:

• Gross Margin: The company excels with a remarkable gross margin of 16.31%, indicating superior cost efficiency and profitability compared to its industry peers.

• Earnings per Share (EPS): Tesla's EPS lags behind the industry average, indicating concerns and potential challenges with a current EPS of 0.13.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.18.

Understanding Financial Valuation:

• Price to Earnings (P/E) Ratio: Tesla's stock is currently priced at a premium level, as reflected in the higher-than-average P/E ratio of 160.3.

• Price to Sales (P/S) Ratio: With a higher-than-average P/S ratio of 10.28, Tesla's stock is perceived as being overvalued in the market, particularly in relation to sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Tesla's EV/EBITDA ratio of 64.56 exceeds industry averages, indicating a premium valuation in the market

Market Capitalization Highlights: Above the industry average, the company's market capitalization signifies a significant scale, indicating strong confidence and market prominence.

Now trade stocks online commission free with Charles Schwab, a trusted and complete investment firm.

The Relevance of Insider Transactions

Investors should view insider transactions as part of a multifaceted analysis and not rely solely on them for decision-making.

When discussing legal matters, the term "insider" refers to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, as stipulated in Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are required to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.

A new purchase by a company insider is a indication that they anticipate the stock will rise.

On the other hand, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.

Essential Transaction Codes Unveiled

In the domain of transactions, investors frequently turn their focus to those taking place in the open market, as meticulously outlined in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of Tesla's Insider Trades.

Insider Buying Alert: Profit from C-Suite Moves

Benzinga Edge reveals every insider trade in real-time. Don't miss the next big stock move driven by insider confidence. Unlock this ultimate sentiment indicator now. Click here for access.

This article was generated by Benzinga's automated content engine and reviewed by an editor.