Tesla's board chair has sold over $500M worth of stock
What's the story
Tesla's board of directors chair Robyn Denholm has sold nearly $200 million worth of the company's stock in the last six months.
This is part of a larger total that goes over half a billion dollars since she took her position in 2018.
The sales were made under a prearranged trading plan started in July 2024, after CEO Elon Musk's public endorsement for Donald Trump as president.
Sales details
Denholm's sales amid Tesla stock fluctuations
Denholm's first sale under the trading plan came a week after the election and continued until early May 2025, even as Tesla shares sank by double digits from their recent peak.
According to SEC disclosures, she now holds some 85,000 shares and nearly 200,000 unexercised options.
These remaining holdings could be worth anywhere between $50 million and $80 million at current prices.
Background
Denholm's journey and compensation structure
Denholm, a former tech executive from Australia, became board chair in 2018 as part of a settlement with the SEC that mandated Musk to step down.
Her pay has mostly been in the form of stock options awarded since 2014.
For example, she recently purchased over 112,000 shares at $24.73 each and sold them the same day for over $270 apiece.
Board scrutiny
Concerns over board independence and compensation
Denholm's stock sales have raised questions about the independence of Tesla's board members, especially as Musk has urged employees to "hang on to your stock."
Brad Lander, New York City's comptroller whose office oversees major public pension funds invested in Tesla, expressed concerns over the message sent by these actions.
Notably, a 2023 settlement of a 2020 shareholder lawsuit has seen members including Denholm returning hundreds of millions in cash and options without admitting wrongdoing.