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Who Are the Top 4 Tesla (TSLA) Shareholders?

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Recent articles covering the top TSLA shareholders have concentrated on their percentage of the company shares. My interest is in the recent trading patterns, mostly involving options exercises, of these top shareholders. Here are the results on my analysis.

Elon Musk

I really do not need to give a bio of Elon. If you read this site you know everything about the man. He is the CEO of Tesla Motors and SpaceX, and the Chairman of SolarCity.

Prior to the recent secondary Public offering, he owned about 29.57 million shares. His involvement in the latest offering included 3 major transactions: (1) the exercise of stock options to acquire 5,503,972 shares of Tesla’s common stock, (2) the sale of 2,782,670 shares of TSLA  common stock and (3) donating 1,200,000 shares of common stock to charity. If one also adds all of Mr. Musk shares plus all shares issuable to Musk if all options vested and exercisable within 60 days after March 31, 2016 were hypothetically exercised, Musk has beneficial ownership of 33,738,794 (33.73 million) shares or 22.5% of Tesla’s common stock.

Antonio J. Gracias

Antonio J. Gracias serves as Chief Executive Officer and Chairman of the Investment Committee of private-equity-fund operator Value Equity Partners. His duties include overall responsibility for the Firm’s management, operations, and investing. He also sits on the boards of Tesla Motors (a company in which Valor invests), SolarCity and SpaceX.

According to his bio on the Tesla Investors site, “Mr. Gracias holds a joint B.S. and M.S.F.S. (honors degree) in International Finance and Economics from the Georgetown University School of Foreign Service. He also studied corporate structures and economic development at Waseda University in Tokyo, Japan. Prior to completing his Masters, Mr. Gracias returned to Japan as a Nikko Securities Fellow. Mr. Gracias holds a J.D. from the University of Chicago Law School. He is fluent in Spanish, proficient in Portuguese, and has a working knowledge of Japanese.”

In 2013, Mr Gracia was one of the subjects of the Wall Street Journal article “Directors Take Shelter in Trading Plans.”

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According to the article, “These plans—opaque documents about which little is disclosed to regulators or the public—increasingly are moving beyond the executives for whom they were chiefly devised and finding favor with a different variety of insider: members of boards of directors, including some who run investment funds. Non-executive directors’ [such as Antonio J. Gracias] use of so-called 10b5-1 trading plans, which lay out future stock trades at set prices or on set dates, has jumped 55% since 2008, a Wall Street Journal analysis of regulatory filings found. […] Valor set up a 10b5-1 plan in November 2011 and Mr. Gracias reported the sale of 927,205 of Valor’s Tesla shares from March 9 through March 20, 2012, regulatory filings show [FORM 4]. In those 11 days, Valor sold $32 million of Tesla stock, more than half its stake. Tesla’s stock price soon got hit.’

There is no requirement to disclose the terms of trading plans. Even their existence often remains hidden. Tesla does report these types of transaction in FORM 4 disclosures.

Looking at the FORM 4 disclosures, a.k.a. Statement of Beneficial Ownership, for Antonio J. Gracias available on Tesla investor web site, for the past year, I discovered that he received several Non-Qualified Stock Option awards for his work as Director of Tesla: 50,000 with exercise of $261.89 on 6/18/2015, 51,000 with exercise of $250.69 on 6/12/2015. All these options are currently “under water” (below the current stock price) and effectively worthless, until the stock moves above the exercise price.

On 6/2 and 6/3, 2014 Antonio J. Gracias sold about $3 million of TSLA stock owned through his Trust and the AIJ Growth Fund.

As of May 15, 2016, Antonio Gracias held 254,647 shares of Tesla, which were worth approximately $56.5 million, and represent about 0.18% of Tesla’s common stock.

Kimbal Musk

According to Tesla Investors web site, “Kimbal Musk is CEO of Medium, Inc, an internet software company based in Boulder, Colo. Prior to Medium, he has been involved in many young businesses. Mr. Musk and his brother, Elon, started their first company, Zip2, an early content management company for the Internet, 1995. It was the first company to bring vector-based maps and door-to-door directions to the internet, and it built the online content management systems behind more than 100 media companies, including The New York Times. Zip2 was sold for $307 million in cash in 1999, one of the largest transactions of its kind in the internet industry.”

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He sits on the board of Tesla Motors and SpaceX.

Looking at his latest filed FORM 4, Statement of Beneficial Ownership, on 5/2/2016 he exercised 5,555 non-qualified stock options, with exercise price of $29.6, and sold them at a $1.15 million profit.

As of May 15, 2016, Musk Kimbal held 152,325 shares of Tesla, which are worth approximately $33.81 million, and represent about 0.10% of Tesla’s common stock.

Jeffrey B. Straubel

Like Elon Musk, Jeffrey B. Straubel also known as “JB” needs no introduction as Chief Technology Officer of Tesla Motors.

According to the company’s Investors page, “As a co-founder of Tesla, JB has overseen the technical and engineering design of the vehicles, focusing on the battery, motor, power electronics, and high-level software sub-systems. Additionally, he evaluates new technology, manages vehicle systems testing, and handles technical interface with key vendors.”

Looking at the FORM 4 filings of the last couple of years for Jeffrey B. Straubel, two things are interesting to note. First on 4/11/2016 he was awarded 1,837 ISOs (Incentive Stock Options) and 61, 771 NSOs (Non-qualified Stock Options), at an exercise price of $249.92. As with Antonio Gracias, these options are underwater, and worthless at the moment, given the current stock price.

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Secondly, between May 2015 and December 2015, Jeffrey B Straubel, set up pre-determined Rule 10b5-1 Trading Plan, where he would exercise and sell about 10,000 options in almost every month, on the 15th of the month. Accordingly, he exercised and sold 75,000 shares of stock, at prices between $206 and $263, for a total profit of about $17.8 million.  Not too shabby for the tech guy.

As of May 15, 2016, Jeffrey B. Straubel held 242,818 shares of Tesla, which are worth approximately $53.90 million, and represent about 0.17% of Tesla’s common stock.

Technical Analysis

Looking at today’s $TSLA stock action, TSLA is having a flat day like the rest of the market. The stock is still above the 200-day moving average, but the candle is forming a Doji, usually a sign of indecision. This could mean the end of the 10-session Heikin Ashi positive pay-day-cycle or just a pause in the up trend. I have a conditional stop at $220, that will ensure I keep some profits from the swing trade I started 12 trading-days ago.

This afternoon at 2PM PDT, the Tesla Motors Inc. 2016 Annual Shareholder’s Meeting is being held at the Computer History Museum in Mountain View, CA.. It will be streaming online at:

https://www.teslamotors.com/2016shareholdermeeting

 

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Investor's Corner

Tesla Optimus Gen 3 shows off a cleaner, factory-ready design in new app discovery

Renders hidden inside Tesla’s Android app show Optimus Gen 3’s design before any official reveal.

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Tesla Optimus Gen 3 [Credit: Tesla]

Tesla may have accidentally given a first look at its newest Optimus Gen 3 humanoid robot when photos were found in the Tesla smartphone app.

Design files tucked inside a recent Android version of the Tesla app appear to show the third generation humanoid robot next to the older Gen 2.5 prototype. The assets were extracted from the app package by Tesla community member @wholemars, who posted the renders on X late Tuesday night before deleting them. The Tesla Newswire reshared the side by side comparison on Wednesday, and the images have circulated widely since.

Tesla Optimus Gen 2.5 vs Gen 3 comparison via @WholeMars on X

Tesla Optimus Gen 2.5 vs Gen 3 comparison via @WholeMars on X

The files are labeled “gen3” and were built as models for Tesla app’s own interface, as validated directly by Grok to be official.

The comparison shows a robot that looks built for a factory line rather than a lab bench. Gen 2.5’s exposed mechanical linkages and gold plating on the knees and shins are gone. In their place, Gen 3 uses matte black fairings on the lower legs, paired with a more contoured champagne gold body. Flexible covers now seal the joint where the torso meets the upper thighs, keeping bearings and moving parts sealed from debris and unnecessary contact.

The body panels fit more tightly, and the hands, which Tesla has said carry 22 degrees of freedom, look far more refined than those on earlier units.

This most recent leak fills a gap Tesla has left open for most of the year. Elon Musk said on March 31 that Optimus 3 was walking around but needed “some finishing touches” before it could be shown, a delay Teslarati covered when Tesla missed its first quarter reveal target. Musk later said Tesla would hold the design back until closer to production, partly to keep competitors from copying it. No reveal date has been announced.

The app itself has been preparing for Optimus for months. In July, code in the Tesla app pointed to a dedicated robot phone key, a consent screen for collecting video and spatial data while Optimus works inside a home, and an alert system for low battery and mechanical faults. Finished 3D models of Gen 3 suggest the interface owners will eventually use is moving past placeholder code toward something Tesla intends to ship.

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Manufacturing is moving in parallel. Tesla tore out the original Model S and Model X lines at Fremont this summer to make room for Optimus production, with a planned capacity of one million robots a year. At Giga Texas, the steel frame of a dedicated Optimus factory is nearing completion ahead of a targeted 2027 start, with Musk pointing to an eventual output of 10 million units annually.

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Elon Musk

X changed how everyone gets paid, and this lawsuit shows why

X sued a Bitcoin account network over fake payouts as its creator pay model shifts

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Elon Musk’s X has taken a Bitcoin-focused engagement ring to court, and the case doubles as a receipt for how differently the platform pays creators today. The company filed suit in the High Court of England and Wales against Vivek Kumar Sen and Zamyang Sherpa, alleging the pair ran six accounts, including @Vivek4real_, @Bitcoin_Teddy and @TrendingBitcoin, as one coordinated operation to fake the kind of engagement that used to translate directly into money.

According to the filing, first reported by Gizmodo, the accounts posted near identical “BREAKING” crypto headlines seconds apart, in one case 11 seconds, then had three more handles like, reply to and repost the material to manufacture what X called “a false appearance of genuine, human communication and interaction.” X says the scheme pulled in at least £207,384, about $278,000, and pegs its own investigation and remediation costs at another £75,000. The accounts were suspended August 18. X general counsel James Burnham announced the case on X last weekend, writing that the company “will act forcefully to protect our platform and the earnings of genuine creators.” Musk’s own reaction, posted shortly after, was three words: “Don’t mess with 𝕏.”

The timing lines up with a a recent update to how X pays its creators. The program these accounts allegedly gamed, Creator Revenue Sharing, launched in mid 2023 and paid out based on how much a post got engaged with. Originality was never part of the formula, which is exactly how the platform ended up flooded with recycled clips, copy pasted “BREAKING” posts and replies engineered purely to farm reactions from paying subscribers.

X tried patching the model more than once, including an April cut to aggregator payouts and a March regional weighting change that Musk personally paused hours after it was announced. X retired Creator Revenue Sharing for good on September 7 and opened its replacement, Original Content Rewards, the next day.

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The new math is stricter. Payouts now come only from qualified impressions, meaning unique Home Timeline views from Premium subscribers where at least half the post is visible, and replies no longer count toward eligibility at all. Copied posts, reuploaded media and reposts without meaningful changes are explicitly excluded. Allegra Jacchia, senior product manager for Creators at SpaceXAI, which now runs X’s product and AI work following xAI’s acquisition of the platform, put it bluntly, saying the goal is to reward creators who bring original ideas and perspective, “not those who have become best at gaming the system.”

Read that way, the lawsuit isn’t really about six crypto accounts. It’s X putting a dollar figure on what the old incentive structure cost, then suing to collect it right as the new one goes live. For live updates on how the case and the new rewards program shake out, follow @Teslarati on X.

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Elon Musk

Why automakers keep turning down Elon Musk’s Tesla Full Self-Driving offer

Elon Musk confirms no automaker has ever accepted Tesla’s offer to license Full Self-Driving software.

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Elon Musk gave a brief answer on X Monday that confirmed that Tesla’s standing offer to license Full Self-Driving to other automakers still has zero takers. Sawyer Merritt wrote that “Tesla has for years openly invited other automakers to license FSD. None of them have accepted,” responding to a prediction from Boom Supersonic founder Blake Scholl that Tesla would eventually open FSD the way it opened its Supercharger network to rival brands. Musk’s reply to Merritt was one word: “Exactly.”

It is not the first time Musk has made this point. He said something similar in November, when he called legacy automakers reluctance to adopt FSD “crazy,” and Tesla has floated the offer publicly since at least 2021. Scholl’s prediction touches on something real. Once NACS became the de facto charging standard, adoption from Ford, GM, Rivian and others followed within about a year. FSD licensing was supposed to work the same way once Tesla built enough of a lead that switching made sense for everyone.

The case for licensing now is stronger than it was two years ago. Waymo and Zoox are logging hundreds of thousands of unsupervised autonomous miles, along with Tesla’s own Robotaxi fleet. Every automaker still selling driver assist systems that lag FSD has given the robotaxi conversation to Tesla, Waymo and Zoox by default. Licensing FSD would let a GM or a Ford compete on the same field without spending a decade and billions of dollars building a stack from scratch, the same argument Tesla made when it opened the Supercharger network to bring more EVs onto its chargers.

But FSD is not a connector standard. As one reply to Musk’s post pointed out, licensing FSD is not a software license the way NACS was a plug spec. It requires adopting Tesla’s eight camera layout and its onboard compute architecture, meaning a licensee’s cars would effectively become Tesla hardware wearing someone else’s badge. That is the visible obstacle. The less visible one is data. A licensed FSD stack would report back the same telemetry Tesla collects from its own fleet, giving Tesla a continuous read on how a competitor’s cars are actually driven, where they struggle, and how often drivers intervene. For an automaker trying to build its own autonomy program, or simply trying to keep its build quality and safety record private, handing Tesla that visibility could be a bigger cost than the hardware bill. It is the reason the Supercharger comparison only goes so far. Opening a charging plug cost Tesla very little. Opening FSD would cost a rival something it cannot get back.

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