Gregory Reichow, a Tesla Motors Inc (NASDAQ:TSLA) vice president, recently cashed in 21 percent of his executive stock options, selling 15,000 Tesla shares and cashing out for a cool $1.6 million in profit.
According to a company filing with the Securities and Exchange Commission posted after markets closed on Wednesday, the head of Tesla’s powertrain manufacturing bought the shares on Nov. 8, three days after Tesla posted a lackluster third-quarter earnings report, at a strike price of $25.27 and immediately sold them for $133.28 in a $2-million transaction.
Reichow still has the right to buy 55,816 shares of Tesla worth about $7.8 million based on Thursday’s share price, so it’s not a matter of an executive jumping ship. Nevertheless, it would be unusual to sell shares if they’re perceived to be rising in price. Tesla’s stock price is down 21.6 percent since the company filed its earnings and down 1.8 percent since the Reichow transaction.
TSLA was trading at nearly a three-month low on Thursday morning at $137.90.
Insider Trades: Tesla (TSLA) Manufacturing VP Gregory Reichow Sells 15,000 Shares Of His Company
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