In March, after Tesla’s share price dropped sharply, CEO Elon Musk urged employees to “hang on to your stock.” However, Robyn Denholm, chair of Tesla’s board, chose a different path. Over the past six months, she sold $198 million worth of Tesla shares earned as board compensation. This is part of a broader trend since she became chair in late 2018, with total sales profits exceeding $530 million, significantly outpacing peers at other major U.S. companies.
Denholm’s Stock Sales Reflect Doubts Amid Musk’s Political Distractions And Profit Declines
Denholm’s large-scale share sales raise questions about her confidence in Tesla’s prospects. The sales occurred during a period when Musk’s involvement in political activities, including a role in the Trump administration, distracted him from company operations and hurt sales. Tesla’s quarterly profit in early 2025 fell to its lowest point in four years, partly due to declining car sales linked to Musk’s controversial public image.
Tesla Chair Cashes Out $198M as Musk Urges Holding, Fueling Doubts Over Leadership and Stability
Denholm’s stock sales stem from stock options granted for her board service, a part-time role. These options, awarded between 2014 and 2020, allowed her to buy shares at prices far below their current value. For example, she recently exercised options to buy over 112,000 shares at $24.73 each and sold them immediately at over $270 per share, capitalizing on Tesla’s soaring stock price.
Denholm’s Sales Timed With Trump Endorsement, Revealing Leadership Contrasts And Market Concerns
The timing of Denholm’s sales also aligns with significant political events. She filed a stock sale plan shortly after Musk publicly endorsed Donald Trump for president. The initial sale took place the week following Trump’s election victory, suggesting the plan was strategically designed to capitalize on market conditions influenced by political developments.
Denholm’s substantial stock sales, contrasted with Musk’s public encouragement to hold Tesla shares, highlight potential differences in leadership perspectives. The actions may affect investor confidence, as board members’ stock trades often signal their outlook on a company’s future. Tesla faces challenges from market fluctuations and leadership distractions, making these sales particularly noteworthy.
