Investor's Corner

Who Are the Top 4 Tesla (TSLA) Shareholders?

Published

9 years ago

May 31, 2016

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.”

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.”

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.

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 15^th 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

Investor's Corner

xAI targets $5 billion debt offering to fuel company goals

Elon Musk’s xAI is targeting a $5B debt raise, led by Morgan Stanley, to scale its artificial intelligence efforts.

Published

4 hours ago

June 10, 2025

Maria Merano

(Credit: xAI)

xAI’s $5 billion debt offering, marketed by Morgan Stanley, underscores Elon Musk’s ambitious plans to expand the artificial intelligence venture. The xAI package comprises bonds and two loans, highlighting the company’s strategic push to fuel its artificial intelligence development.

Last week, Morgan Stanley began pitching a floating-rate term loan B at 97 cents on the dollar with a variable interest rate of 700 basis points over the SOFR benchmark, one source said. A second option offers a fixed-rate loan and bonds at 12%, with terms contingent on investor appetite. This “best efforts” transaction, where the debt size hinges on demand, reflects cautious lending in an uncertain economic climate.

According to Reuters sources, Morgan Stanley will not guarantee the issue volume or commit its own capital in the xAI deal, marking a shift from past commitments. The change in approach stems from lessons learned during Musk’s 2022 X acquisition when Morgan Stanley and six other banks held $13 billion in debt for over two years.

https://t.co/QkAI65RUv9— TESLARATI (@Teslarati) June 9, 2025

Morgan Stanley and the six other banks backing Musk’s X acquisition could only dispose of that debt earlier this year. They capitalized on X’s improved operating performance over the previous two quarters as traffic on the platform increased engagement around the U.S. presidential elections. This time, Morgan Stanley’s prudent strategy mitigates similar risks.

Beyond debt, xAI is in talks to raise $20 billion in equity, potentially valuing the company between $120 billion and $200 billion, sources said. In April, Musk hinted at a significant valuation adjustment for xAI, stating he was looking to put a “proper value” on xAI during an investor call.

As xAI pursues this $5 billion debt offering, its financial strategy positions it to lead the AI revolution, blending innovation with market opportunity.

Elon Musk

Tesla tops Cathie Wood’s stock picks, predicts $2,600 surge

Tesla’s future lies beyond cars—with robotaxis, humanoid bots & AI-driven factories. Cathie Wood predicts a 9x surge in 5 years.

Published

1 day ago

June 9, 2025

Maria Merano

Cathie Wood shared that Tesla is her top stock pick. During Steven Bartlett’s podcast “The Diary Of A CEO,” the Ark Invest founder highlighted Tesla’s innovative edge, citing its convergence of robotics, energy storage, and AI.

“Because think about it. It is a convergence among three of our major platforms. So, robots, energy storage, AI,” Wood said of Tesla. She emphasized the company’s potential beyond its current offerings, particularly with its Optimus robots.

“And it’s not stopping with robotaxis; there’s a story beyond that with humanoid robots, and our $2,600 number has nothing for humanoid robots. We just thought it’d be an investment, period,” she added.

🤔I mean, there is a reason why Elon Musk believes Optimus will be Tesla's biggest product. Its potential is just that immense.pic.twitter.com/jK7tMjcyci— TESLARATI (@Teslarati) May 21, 2025

In June 2024, Ark Invest issued a $2,600 price target for Tesla, which Wood reaffirmed in a March Bloomberg interview, projecting the stock to reach this level within five years. She told Bartlett that Tesla’s Optimus robots would drive productivity gains and create new revenue streams.

Elon Musk echoed Wood’s optimism in a CNBC interview last month.

“We expect to have thousands of Optimus robots working in Tesla factories by the end of this year, beginning this fall. And we expect to scale Optimus up faster than any product, I think, in history to get to millions of units per year as soon as possible,” Musk said.

Tesla’s stock has faced volatility lately, hitting a peak closing price of $479 in December after President Donald Trump’s election win. However, Musk’s involvement with the White House DOGE office triggered protests and boycotts, contributing to a stock decline of over 40% from mid-December highs by March.

The volatility in Tesla stock alarmed investors, who urged Musk to refocus on the company. In a May earnings call, Musk responded, stating he would be “scaling down his involvement with DOGE to focus on Tesla.” Through it all, Cathie Wood and Ark Invest maintained their faith in Tesla. Wood, in particular, predicted that the “brand damage” Tesla experienced earlier this year would not be long term.

Despite recent fluctuations, Wood’s confidence in Tesla underscores its potential to redefine industries through AI and robotics. As Musk shifts his focus back to Tesla, the company’s advancements in Optimus and other innovations could drive it toward Wood’s ambitious $2,600 target, positioning Tesla as a leader in the evolving tech landscape.

Investor's Corner

Goldman Sachs reduces Tesla price target to $285

Despite Goldman Sach’s NASDAQ: TSLA price cut to $285, Tesla boasts $95.7B in revenue & nearly $1T market cap.

Published

4 days ago

June 6, 2025

Maria Merano

(Credit: Tesla)

Goldman Sachs analysts cut Tesla’s price target to $285 from $295, maintaining a Neutral rating.

The adjustment reflects weaker sales performance across key markets, with Tesla shares trading at $284.70, down nearly 18% in the past week. The analysts pointed to declining sales data in the United States, Europe, and China as the primary driver for the revised outlook. In the U.S., Tesla’s quarter-to-date deliveries through May fell mid-teens year-over-year, according to Wards and Motor Intelligence.

In Europe, April registrations plummeted 50% year-over-year, with May showing a mid-20% decline, per industry data. Meanwhile, the China Passenger Car Association (CPCA) reported a 20% year-over-year drop in May, despite a 5.5% sequential increase from April. Consumer surveys from HundredX and Morning Consult also shaped Goldman Sachs’ lowered delivery and EPS forecasts.

Goldman Sachs now projects Tesla’s second-quarter deliveries to range between 335,000 and 395,000 vehicles, with a base case of 365,000, down from a prior estimate of 410,000 and below the Visible Alpha Consensus of 417,000. Despite these headwinds, Tesla’s financials remain strong, with $95.7 billion in trailing twelve-month revenue and a $917 billion market capitalization.

Regionally, Tesla’s challenges are stark. In Germany, the German road traffic agency KBA reported Tesla’s May sales dropped 36.2% year-over-year, despite a 44.9% surge in overall electric vehicle registrations. Tesla’s sales fell 29% last month in Spain, according to the ANFAC industry group. These declines highlight shifting consumer preferences amid growing competition.

On a positive note, Tesla is making strategic moves. The Model 3 and Model Y are part of a Chinese government campaign to boost rural sales, potentially mitigating losses. Piper Sandler analysts reiterated an Overweight rating, emphasizing Tesla’s supply chain strategy.

Alexander Potter stated, “Thanks to vertical integration, Tesla is the only car company that is trying to source batteries, at scale, without relying on China.”

As Tesla navigates these delivery challenges, its focus on innovation and supply chain resilience could help it maintain its edge in the electric vehicle market despite short-term hurdles.