According to a regulatory filing on Wednesday, Robyn Denholm, chairman of Tesla Inc (NASDAQ:TSLA), sold 31,250 shares of the company for more than $22 million.
Q2 2021 hedge fund letters, conferences and more
Transaction Details
As reported by Bloomberg, the filing shows she exercised options to purchase the shares, “paying the required strike prices, then subsequently sold the stock.” The transactions were made on August 2, with weighted average prices between $700 and $726.11.
Denholm –who joined Tesla’s board in August 2014– was a witness in the shareholder lawsuit over the company’s acquisition of SolarCity in 2016, with Elon Musk also testifying in mid-July.
The Australian executive was appointed chairman in November 2018 after Elon Musk was forced to step down from the role following his settlement with the U.S. Securities and Exchange Commission.
The agreement was announced in September 2018 and required Musk to relinquish his position and be substituted by an independent chairman for three years. Since the three years have nearly passed, Musk could return to the role.
Tesla posted a net income of $1.14 billion in the second quarter, nearly ten times the $104 million reported in the same period in 2020. It is the first time the firm has reached the billion-dollar mark in any quarter.
Tesla Stock, Overvalued
Tesla has recovered for the first time in three months to $700 per share while Elon Musk asserts that he doesn’t want to be “nobody’s boss.”
However, Elon Musk’s firm has been wedged the high $500’s or mid $600’s range in terms of trading. Tesla stock could actually be one of the worse investments in the world at this time, with staying so for a long while.
Craig Irwin, senior research analyst at Roth Capital, told CNBC in April that Tesla’s stock was overvalued and worth only $150. “The electric carmaker must do more to justify its share price of nearly $700.”
“I see this as a market dislocation, I see this as something avoiding analysis of the fundamentals and I think there’s room for many successful companies in the market.”
“People are just assuming that Tesla has no competition when they put this kind of lofty valuation on the company.”
Tesla is part of the Entrepreneur Index, which tracks 60 of the largest publicly traded companies managed by their founders or their founders’ families.
