The chairwoman of electric car company Tesla has triggered options to buy stock worth more than $22 million and sold the shares on the open market, according to Securities Exchange Commission filings.
Robyn Denholm exercised options over 31,250 shares and sold them in several tranches at prices ranging from $703 to $726, according to a regulatory filing made on 4 August.
Denholm, an independent director of Tesla since 2014, became chairwoman after founder and chief executive Elon Musk was ordered by the US regulator to relinquish the role for three years in 2018.
That three-year term expires in November this year, and market watchers have been speculating that Musk could demand to reclaim the chair later this year.
Holding the dual roles of chair and chief executive are not outlawed but the practice is often frowned upon by investors because of governance issues.
TESLA STOCK STRIKES BACK
Tesla’s share price has rallied 24% since early June after struggling against the risk-off mood that dominated global markets during the first half of 2021.
The stock’s recent hot streak has been helped by record-breaking vehicle deliveries in the second quarter, and revenues and earnings that beat Wall Street forecasts.
‘Bottom line, we still really like this stock,’ said Piper Sandler analyst Alexander Potter following the quarterly update on 26 July.
He pointed out that Tesla is the number one electric vehicle brand in the US, and number two in both China and Europe.
Potter currently has a $1,200 price target on Tesla stock, one of the highest among Wall Street analysts.
The average target price stands at $703, according to Refinitiv data, a fraction below the overnight close of $710.92.
You can read Shares’ recent investment debate on Tesla here.
