Former Tesla executive Drew Baglino, who announced his resignation earlier this month, sold shares in the electric vehicle company worth around $181.5 million, according to a filing on Thursday with the SEC. Baglino, who joined Tesla in 2006, is selling about 1.14 million of his shares, the filing said, listing an “approximate date of sale” of April 25, and describing it as an exercise of stock options. Prior to the latest sale, Baglino had unloaded about $4 million worth of shares in two transactions this year — one in late February and the other in early April, filings show.
Baglino began as an engineer and climbed the ranks, most recently serving as senior vice president of powertrain and energy engineering, a job he’d held since 2016. Baglino had become a familiar voice and face to shareholders, often discussing mining, battery manufacturing, and performance during earnings calls and other major company events, including a presentation of Tesla’s “Master Plan part 3” in the spring of 2023. Reporting directly to Musk, Baglino was seen as the unofficial chief of operations by many colleagues.
During the earnings call, Musk emphasized Tesla’s focus on its “autonomy roadmap,” including plans to unveil a robotaxi, or CyberCab, design on Aug. 8. Musk also highlighted Tesla’s investments in AI infrastructure and the company’s potential to deliver self-driving vehicle technology, robotaxis, a driverless ride-hailing service, and a “sentient” humanoid robot, urging investors to believe in Tesla’s autonomy capabilities.
“I made the difficult decision to move on from Tesla after 18 years yesterday,” Baglino wrote in a statement posted to Twitter. “I am so thankful to have worked with and learned from the countless incredibly talented people at Tesla over the years.” Tesla’s share price, down about 40% for the year prior to the earnings report, jumped 18% in the two trading days after Musk’s commentary, closing on Thursday at $170.18.
Bernstein analyst Toni Sacconaghi raised concerns about Tesla’s future, questioning the viability of the affordable EVs promised by Musk and comparing Tesla’s progress in autonomous vehicle research with competitors like Waymo. Tesla reported a 9% drop in first-quarter revenue, its steepest year-over-year decline since 2012, attributed to declining demand and increased global competition. The company also reported a 55% drop in net income in the quarter.
While Musk remains optimistic about the second quarter, Tesla hasn’t issued guidance for the year. With key executives like Baglino and Tesla’s vice president of investor relations resigning, the company is facing challenges amid its strategic shifts and increasing competition in the electric vehicle market.
