Editor's note: This article has been updated to reflect the correct number of Tesla shares beneficially owned by Kimbal Musk and the value of that holding. We apologize for the error.
Tesla, Inc. TSLA CEO Elon Musk’s brother Kimbal Musk on Wednesday bought 25,000 shares in the electric-vehicle firm.
The purchase followed exercising of a call option to buy the shares at an exercise price of $74.17 on Monday, expending about $1.85 million, a Form-4 filing showed. The expiration date for the call option, which gives the right to buy the stock, is June 18, 2025.
Following the purchase, Musk beneficially owns 536,240 Tesla shares. Based on Wednesday’s closing price, his holding is worth about $442.1 million.
Musk has been a board member at Tesla since 2004 and a major shareholder in SpaceX.
The stock option award is a triennial award granted to Musk following Tesla’s 2010 equity incentive plan and outside director compensation policy. About 1/36 of the 2010 award could be vested and exercised as of each monthly anniversary following June. 18, 2018. This suggests that the option could have been fully vested and exercised by June 18, 2021.
Related Link: Elon Musk's Brother Kimbal Launches Crypto Project
Musk is a restaurateur, chef, and entrepreneur, and he owns “The Kitchen Restaurant Group,” a group of community restaurants in Colorado, Chicago and Indianapolis.
Incidentally, he sold Tesla shares worth $108 million in November when his brother Elon asked his Twitter followers whether he should sell 10% of his Tesla holdings. Earlier this year, reports suggested that the SEC has launched an investigation into whether the brothers violated insider trading rules while selling shares.
Price Action: Tesla shares closed Wednesday’s session 6.17% higher at $824.46, according to Benzinga Pro data.
Photo by Kimbal Musk on Wikimedia.
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