It seems that Tesla TSLA is in free fall. Sales are down, stock value has nearly halved since December, and investors are getting restless. But while shareholders are watching their investments shrink, one key figure is cashing in big—Robyn Denholm, Tesla's chair.
Denholm’s Massive Earnings Raise Eyebrows
Denholm, a 61-year-old Australian businesswoman and former accountant, was appointed as chair in 2018 after Elon Musk was forced to step down following a settlement with regulators. Since joining Tesla's board in 2014, Denholm has earned an astounding $682 million in cash and stock, according to a recent Reuters analysis. She has already sold about $532 million worth of Tesla shares, even offloading some as recently as early March, just before the stock's recent plunge.
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Denholm's Loyalty Questioned
Critics argue Denholm has done little to represent the interests of Tesla's broader shareholder base, instead acting as Musk's biggest supporter. "Robyn Denholm is the woman paid off to do NOTHING to protect the 83% of Tesla investors she is negligently representing. She only represents one shareholder, Musk," Tesla investor Ross Gerber wrote on X.
Denholm has been a key defender of Musk's massive $56 billion pay package, which is currently being challenged in court. A Delaware judge has already criticized her role in approving the compensation, writing, "Outsized director compensation can [compromise independence]."
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Musk's Political Ties Add to Tesla's Troubles
Musk's involvement in President Donald Trump's administration has fueled public backlash, leading to protests at Tesla showrooms. Consumers upset over Musk's role in slashing the federal workforce have been boycotting the brand, further impacting sales.
Wedbush analyst Dan Ives recently warned that investor patience is wearing thin, noting that Musk has been largely absent from Tesla factories and manufacturing facilities for months. Even Musk himself admitted his government role is making it hard to run Tesla, telling Fox Business, "With great difficulty."
Denholm's Expanding Empire
While Tesla's stock struggles, Denholm has been building her own empire. According to Reuters, she has used her Tesla earnings to establish a family investment firm, Wollemi Capital Group, and has invested in Australian startups, real estate, and professional basketball teams. In 2022, she purchased a record-breaking $18 million double penthouse in Sydney, adding to her growing list of assets.
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But investors are beginning to question whether her extensive business ventures outside of Tesla are distracting her from the job she was hired to do—keeping Musk accountable. "It's Robyn and the board's job to hold this guy's feet to the fire, and it's not happening," Michael R. Levin, a Tesla activist investor, told Reuters.
Can Tesla Turn It Around?
With Tesla reporting its first-ever annual sales decline in 2024 and its stock price down more than 38% over the last year, the company faces mounting pressure to regain investor confidence. Musk has promised to double U.S. vehicle production over the next two years, but many remain skeptical, especially given his split focus between Tesla, his numerous other companies and Trump's administration.
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