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Jerome Guillen Did Not Only Quit Tesla: He's Also Selling His Shares

Jérôme Guillen was considered as one of the most important executives at Tesla, apart from Elon Musk’s problem solver. When he left the company on June 3, some felt that this confirmed his transference to the truck division was a way to demote him. Whatever happened, it seems Guillen does not want to have anything to do with the company anymore: he’s selling his shares at a quick pace.
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According to Reuters, he has already sold an amount of stock worth around $274 million since June 10. The news service learned that thanks to an SEC filing. Ironically, that was the same way we learned about Guillen’s departure from Tesla.

The new SEC filing states that the former Tesla executive sold 90,111 shares worth $55 million on June 10, 145,289 shares worth $89.6 million on June 14, and 215,718 shares worth $129 million on June 15. That represents 451,118 Tesla shares and $273.6 million in Guillen’s pockets.

Martin Eberhard founded Tesla with Marc Tarpenning on July 3, 2003. When Eberhard left the company on November 28, 2007, he sued Tesla and Elon Musk and reached a settlement in September 2009. It included legally considering Musk as one of the company’s founders and getting some of the company’s shares.

That episode shows that even when people left Tesla with a fight, they kept their stock. According to Reuters, Gordon Johnson, an analyst at GLJ Research, said that it would be unlikely that the “second most important person at the company” would sell his shares when Tesla is “on the verge of technological and autonomous breakthroughs.” Daniel Ives, a Wedbush Securities analyst, told Reuters that the move “could raise some eyebrows for investors.”

In other words, nobody would sell anything that they thought it would still appreciate. That would mean they would lose money with the operation. The rule is to sell when the price is high, and buy when it is low. Apparently, Guillen’s departure will raise more discussions, apart from his personal reasons to leave.

 
 
 
 
 

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