Robyn Denholm, the Chairwoman of Tesla, has recently sold $17.3 million worth of her shares in the electric vehicle company, according to a filing made on Monday. This brings her total stock sales for the year to more than $50 million. Denholm, who joined Tesla’s board in 2014 and became chair four years later, sold these shares as part of a 10b5-1 program instituted in October. She has already sold all 281,116 shares permitted under the agreement. Despite these sales, Denholm still retains the majority of the 1.66 million shares she owned at the end of last year as noted in the company’s proxy filing.
Additionally, Denholm’s stock sales follow significant selling activities by other major stakeholders. Former Tesla Senior Vice President Drew Baglino, who resigned in mid-April, sold shares amounting to around $181.5 million shortly after his departure. Another board member, Kathleen Wilson-Thompson, established a 10b5-1 trading plan in February 2024, allowing for the potential sale of up to 280,000 shares by or before Feb. 28, 2025.
As Tesla shares have decreased by 26% this year, Denholm’s decision to sell shares aligns with a broader trend of board members and executives divesting assets. The company is facing tougher competition, reduced demand for its electric vehicles, and a decline in first-quarter deliveries. CEO Elon Musk has been redirecting investor focus towards Tesla’s autonomous driving prospects instead of its core automotive operations, emphasizing the development of self-driving technology and other innovations.
Before her tenure at Tesla, Denholm held executive positions at Sun Microsystems and finance roles at Toyota in Australia and Arthur Andersen. Currently, she serves on various committees within Tesla, including audit, compensation, nominating, corporate governance, and disclosure controls. Denholm has faced legal challenges as a defendant in a shareholder lawsuit, indicating the complexities and pressures surrounding her role as chair.
The recent stock sales by Denholm coincide with significant challenges faced by Tesla, including sluggish demand for EVs and a strategic restructuring involving layoffs and financial adjustments. Musk’s internal communication indicated a reduction of over 10% in global headcount as part of the company’s ongoing restructuring efforts. The restructuring is seen as essential to addressing inefficiencies and improving overall organizational effectiveness.
Denholm and Musk are actively engaging shareholders on proxy proposals, including the reconsideration of Musk’s compensation package invalidated by a legal ruling. The proposal, if accepted, could result in substantial rewards for Musk in Tesla shares. However, dissenting voices, such as major shareholder Leo Koguan, have urged investors to vote against the plan, questioning its implications on the company’s financial stability and governance.
