Tesla chair sells $33 million in stock
Tesla chair Robyn Denholm sells $33 million in stock amid board scrutiny
Robyn Denholm, Tesla's board chair since 2018, sold approximately $33.7 million worth of Tesla stock, continuing a trend of sales following a legal settlement requiring Tesla directors to return excessive compensation.
Key Takeaways
- Robyn Denholm sold 112,390 shares of Tesla stock for about $33.7 million, continuing a pattern of stock sales after her settlement approval.
- Denholm, along with other Tesla directors, agreed to return up to $919 million as part of a settlement over excessive compensation claims between 2017 and 2020.
- Tesla's stock has fallen by about 13% since the November elections, which could be impacting stock sales by executives, including Denholm.
Stock Sale Details
Robyn Denholm, the chair of Tesla's board, has sold another substantial block of Tesla stock, bringing her total sale value to approximately $33.7 million. This follows her earlier sale of the same number of shares, 112,390, for around $43.2 million last month, reports Reuters.
Denholm’s most recent transaction, which occurred through a filing with the Securities and Exchange Commission (SEC), underscores her continuing offloading of stock in the electric vehicle giant. As the price of Tesla’s shares remains volatile, executives like Denholm may be looking to diversify their holdings or capitalize on market movements, raising questions about the potential reasons behind these large transactions.
Tesla, Inc. (TSLA) share price dynamics (2023 - Mar 2025) Source: TradingView
Denholm, who has held the position of Tesla's board chair since November 2018, has been part of a number of transactions that have raised eyebrows among investors and analysts. The frequency and scale of these stock sales come at a time when Tesla’s share price is facing challenges in the broader market.
Director Compensation Settlement
The sale comes shortly after Denholm and other Tesla board members reached a settlement in a lawsuit accusing them of overpaying themselves between 2017 and 2020. The lawsuit, which focused on excessive director compensation, particularly stock options granted to board members during Tesla's rise, led to the approval of a $919 million settlement.
As part of the settlement, Tesla directors, including Denholm, agreed to return the funds they had allegedly overpaid themselves. This case highlighted concerns over the close ties between Tesla’s board members, including CEO Elon Musk, and the significant financial windfalls they had received as stock options soared in value.
Denholm, who has been with Tesla since 2014 and board chair since 2018, previously testified in Musk's $56 billion pay package case that her total earnings from her Tesla tenure amounted to roughly $280 million.
Tesla's Stock Decline
Tesla’s stock has taken a significant dip in recent months, falling about 13% since the November 5 elections. This stock decline comes amid broader market uncertainty and has added pressure to Tesla's leadership team, including Denholm.
The fall in stock price could be a contributing factor in Denholm's decision to sell off her holdings, as well as concerns about Tesla’s future performance amidst broader economic challenges and market fluctuations.
As we wrote, Uber CEO Dara Khosrowshahi expressed optimism about working with Tesla and Elon Musk as the company prepares to launch its robotaxi service.
