Tesla’s board chair, Robyn Denholm, has sold $33.7 million worth of Tesla stock, according to a filing with the SEC on Monday. This follows another stock sale last month, where she offloaded the same number of shares, bringing in $43.2 million in total.

These sales come in the wake of a $919 million legal settlement involving Denholm and other Tesla board members. The lawsuit accused Tesla’s directors of overpaying themselves between 2017 and 2020 when the company’s stock was skyrocketing, making their stock options worth hundreds of millions of dollars.

Denholm, who has been Tesla’s board chair since 2018, previously testified in Elon Musk’s $56 billion pay package lawsuit, revealing that she earned around $280 million during her time at Tesla.

What Does This Mean for Tesla?

1️⃣ Investor Confidence – Large insider stock sales can raise concerns among investors. When a high-ranking executive sells millions in shares, it can lead to speculation about the company’s future.

2️⃣ Tesla’s Board Under Scrutiny – Tesla’s board, which includes Elon Musk’s brother, Kimbal Musk, has been criticized for its close ties to Musk. This sale could add more fuel to those concerns.

3️⃣ Company Stability – While Tesla remains a leader in the EV space, boardroom controversies and executive stock sales can create uncertainty for shareholders. Given the volatile nature of Tesla’s stock, moves like this can influence market sentiment.

Bottom Line

Denholm’s stock sale isn’t necessarily a red flag, but it does come at a time when Tesla’s leadership and compensation practices are under the microscope. Investors will be watching closely to see if more insiders follow suit or if this is just a routine cash-out from an executive who’s already made hundreds of millions from the company.