Two prominent Tesla board members, Ira Ehrenpreis and Kimbal Musk, have made a significant investment in the company by purchasing approximately $200 million worth of Tesla (TSLA) shares.
Tesla’s board members stand out for their generous equity awards and rapid stock sales upon vesting.
compensated; subsequently, they concurred to repay nearly $1 billion in remuneration.
Despite offering an extraordinary level of compensation, Tesla’s chairwoman stands out as the most handsomely rewarded board member among all major publicly traded companies.
Recently, she has been selling her shares in Tesla and is not one of the board members publicly promoting it.
Last night, Tesla disclosed that Ira Ehrenpreis, a long-standing friend and financial backer of CEO Elon Musk, acquired 477,572 shares valued at over $162 million, solidifying his position as a significant investor in the company.
Ehrenpreis’ term on the board is set to expire within the next twelve months. For two decades, he has served on the board with unwavering dedication. As a member of the compensation committee in 2018, he played a crucial role in approving CEO Elon Musk’s contentious compensation package, valued at a staggering $55 billion.
Tesla’s CEO Elon revealed, alongside Ehrenpreis, that his brother Kimball Musk, a long-serving member of the company’s board, acquired 91,588 shares valued at over $32 million.
Electrek’s Take
It’s intriguing that the board would authorize the sale of tens of millions of dollars’ worth of stock just before announcing plans to launch an autonomous ride-hailing service, poised to revolutionize Tesla’s future.
They hardly give it a thought?
While it is acknowledged that some of these transactions by board members were conducted under previously approved plans, concerns persist regarding the opacity surrounding such agreements, leaving uncertainty about the extent to which board members’ discretion was exercised within those plans.
While the exact timing is unclear, it’s noteworthy that Ehrenpreis’ strategy was only recently implemented, specifically in December, shortly after Trump’s presidential win caused a surge in Tesla’s inventory levels. It seems that he was seeking an escape route, and is satisfied with his current situation.
The board likely recognizes the significant legal repercussions facing Tesla due to its failed assurances regarding autonomous driving capabilities, which may overshadow the upcoming rollout in Austin next month.
