Tesla Inc. TSLA chairwoman Robyn Denholm has sold over $50 million in stock this year.
What Happened: As per SEC filings on Monday, Denholm sold $17.32 million worth of her shares in Tesla, bringing her total stock sales this year to more than $50 million. The shares were sold as part of a 10b5-1 program established in October.
As per the filings, Denholm sold shares amounting to 281,116 in three batches: 93,706 shares on Feb. 21, 2024, 93,705 shares on Mar. 12, 2024 and the remaining 93,705 shares on May 6, 2024. The proceeds from the share amount to $52 million.
Last month, Tesla Senior Vice President Drew Baglino, sold shares worth around $181.5 million after his resignation in mid-April.
The development comes amid Tesla’s falling shares due to increased competition, weakened demand for its EVs, and a drop in first-quarter deliveries.
Tesla is yet to respond to the queries sent by Benzinga at the time of writing this article.
See Also: Elon Musk Impressed By Tesla Cybertruck’s World War 2 Inspired Wrap: ‘Cool’
Why It Matters: Denholm’s decision to sell a portion of her shares aligns with the substantial compensation she has received for her role at Tesla. In 2022, she was awarded more than 600,000 shares, valued at over $85 million at the time. Tesla faced a lawsuit from shareholders over what was deemed excessive compensation to board members, leading to a settlement that saw the return of about $735 million in shares and cash.
Denholm and CEO Elon Musk are currently trying to convince shareholders to vote with directors and executives at Tesla on a number of proxy proposals. The most significant proposal asks shareholders to return to Musk his compensation package that was invalidated by the Delaware Chancery Court in the Tornetta decision. This comes after Denholm pleaded with shareholders to reapprove Musk’s $47 billion pay package, which a Delaware judge had previously overturned.
Denholm, who joined Tesla’s board in 2014 and became chair in 2018, is currently part of Tesla’s audit, compensation, nominating and corporate governance, and disclosure controls committees.
Price Action: Tesla shares were trading 3.33% lower at $178.60 at the time of writing on Tuesday, according to Benzinga Pro.
Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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