Days before an Investor Day was held by Tesla Inc TSLA, one of its executives sold shares of the electric vehicle company. Here’s the latest.
What Happened: Tesla’s Investor Day laid out improvements in vertical integration and cost-cutting initiatives. Despite the new announcements and updates from the company, shares of Tesla fell in the after-hours session Wednesday during the event.
Prior to the event, Andrew Baglino, Tesla's senior vice president of powertrain and energy engineering, exercised options to acquire Tesla shares that then were promptly sold, according to Benzinga’s Insider Trades page.
A filing shows Baglino acquired 10,500 shares of Tesla at an average price of $20.91 on Feb. 27. The shares were then sold at an average price of $202, according to a filing from March 1.
The purchase price was $219,555 for the shares and the sale resulted in proceeds of $2,121,000, for a profit of around $1.9 million.
Baglino has served as the company’s senior vice president of powertrain and energy engineering since October 2019. Baglino joined Tesla in March 2006.
After the latest stock transaction, Baglino owns 64,259.25 shares, according to the filing.
Related Link: Here's How Much Tesla Stock Elon Musk Owns
Why It’s Important: Stock options can be given to employees as compensation or bonus incentives. The Elon Musk-led company has been known to reward employees for longevity and also for hitting big milestones.
Musk himself is the subject of a huge compensation package that awards him options based on the company’s market capitalization, revenue and EBITDA. The compensation was recently the subject of a lawsuit.
Benzinga highlighted in 2022 that numerous Tesla executives have sold huge chunks of Tesla shares after exercising options or from their existing share ownership. Tesla executives have not been active in buying shares.
Baglino recently sold Tesla shares in January and December.
Along with Baglino, Tesla CEO Musk and CFO Zachary Kirkhorn have also been active in selling Tesla shares in recent months.
Read Next: Elon Musk Is Once Again The Richest Person In The World
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