NEW YORK (AP) — Robyn Denholm, the chair of Tesla, sold over $230 million worth of company stock as profits at Elon Musk’s carmaker declined significantly. This selling spree began after Elon Musk endorsed Donald Trump, which led to boycotts and protests against Tesla cars, impacting both its profits and stock price.
More than half of Denholm’s proceeds came from sales in the first four months of this year, during which Tesla’s stock fell by one-third. According to filings reviewed by The Associated Press, she sold hundreds of thousands of shares—more than half her holdings—as part of a pre-arranged selling plan filed with regulators. This plan was initiated as Musk started embracing right-wing politics.
Denholm filed the selling plan on July 25, the same day Musk endorsed Trump for president. Her profits were likely substantial due to the shares being acquired through options granted years earlier, allowing her to buy them at a deep discount. Nearly a million shares acquired through these options were bought for $25 each, significantly lower than the market price for much of the last nine months.
The AP contacted both Tesla and Denholm but did not receive an immediate response. In a statement to The New York Times, Denholm mentioned that the share value of holdings by Tesla directors has increased because the stock itself has soared, creating “outsized returns” for all shareholders.
It remains unclear why Denholm decided to sell such a significant portion of her stake. Pre-determined selling schedules are used by executives and directors to assure investors that their selling isn’t based on insider information or necessarily a sign of pessimism about the company.
Denholm isn’t the only Tesla insider selling shares; the chief financial officer and other directors have also unloaded $189 million in stock during the same nine-month period.
Tesla’s stock surged after Trump’s election in November, driven by hopes that his close relationship with Musk would lead to less regulatory scrutiny and higher profits. However, Musk’s role as a government cost-cutting chief for Trump and his support for extreme right-wing politicians in Europe have caused a backlash among car buyers, affecting both sales and stock performance.
Tesla reported a 71% drop in profits for the first three months of the year last month. The stock rebounded after Musk announced he would reduce his involvement in Washington to focus more on Tesla.
Tesla closed at $347 a share on Wednesday, up 4% for the day and more than 50% since its April low.
— new from AP News