Elon Musk's younger brother sells Tesla shares worth $25.6 million

The transaction reduced his holding to 599,740 Tesla shares, which amounts to $483 million. Tesla insiders hold a 19.6% stake in the company

Kimbal Musk, the younger brother of Elon Musk and a Tesla Inc. board member, sold $25.6 million of shares in the electric carmaker, according to a filing with the US Securities & Exchange Commission.

The 48-year-old sold 30,000 shares on Feb. 9 at an average price of $852.12, according to the filing. Tesla shares dropped 5.3 per cent Wednesday to close at $804.82. Tesla soared 743 per cent in 2020 and is up a further 14 per cent this year.

The transaction reduced his holding to 599,740 Tesla shares, which amounts to $483 million. Tesla insiders hold a 19.6 per cent stake in the company, according to data compiled by Bloomberg.

Board member Antonio Gracias meanwhile sold 150,747 Tesla shares, leaving him with a direct holding of 2,545. However, he replaced these with new long positions via long-dated call options, also known as Long-term Equity Anticipation Securities, better known as LEAPs. Gracias bought about 150,000 call options expiring in June 2022 and 2025 with exercise prices of $52.38 and $68.56. He also indirectly owns 1.3 million Tesla shares through AJG Growth Fund.

Kimbal Musk is chief executive officer and co-founder of The Kitchen Restaurant Group. Gracias is the founder and head of Valor Equity Partners.