Tesla chair sells $230 million in stock while company profits plummet

In the United States, Robyn Denholm, chair of Tesla, sold over $230 million in Tesla stock during a period when the company experienced a significant decline in profits. This selling occurred following Elon Musk's endorsement of Donald Trump, which resulted in backlash against the brand, impacting sales and stock prices. Over half of Denholm's sales took place in the initial four months of the year, with Tesla's stock price dropping by one-third during that timeframe. Denholm's stock sales were conducted under a pre-arranged selling plan, which she filed with regulators on July 25, the same day Musk announced his support for Trump. She unloaded hundreds of thousands of shares, accounting for more than half of her holdings. Many of the shares sold came from options she acquired at a substantially lower price than the market value, resulting in her receiving considerable profits despite the stock falling overall. While Denholm's sales raise questions about her confidence in the company’s future, the rationale for such a substantial cash-out remains unclear. Other Tesla executives, including the chief financial officer, have also been liquidating their shares, totaling $189 million in stock sold during the same nine-month period. After an initial surge post-Trump's election, Tesla's stock began to largely suffer as buyers reacted negatively to Musk's political stances, which led to significant profit losses. In the first quarter of this year, Tesla reported a staggering 71% decrease in profits. The situation shifted as Musk announced he would be decreasing his involvement in political matters to focus on Tesla operations, which led to a rebound in stock prices. By mid-May, Tesla shares closed at $347, marking a 50% increase from their April lows, indicating a volatile market response to the surrounding political climate and executive decisions.