Tesla shareholders are facing yet another rough patch as key insiders continue to sell off their shares at an alarming rate. This time, it was board member James Murdoch who added to the ongoing turmoil. On Monday, the company revealed that Murdoch had offloaded a significant amount of stock, worsening the already declining situation.
Murdoch exercised stock options for 54,776 shares, receiving them as part of his compensation for serving on the board. However, instead of holding onto them, he immediately sold them off for $13.2 million in cash. This transaction contributed to Tesla experiencing its worst single-day stock decline since September 2020.
Murdoch wasn’t alone in his decision to sell. Over the past few weeks, other high-profile figures connected to Tesla have also cashed out their shares. Chairperson Robyn Denholm, along with Elon Musk’s younger brother, Kimbal Musk, and Chief Financial Officer Vaibhav Taneja, recently sold their stock as well. These moves have left dedicated retail investors feeling uneasy, as they rely on key figures in the company to show faith in the stock rather than selling at a low point.
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Adding to the frustration, Murdoch’s sale wasn’t part of a pre-scheduled trading plan, meaning the decision to sell was made at this moment despite Tesla’s stock price already being in decline. Investors who have held onto their shares through thick and thin are left wondering why these corporate figures are choosing to exit now.
Investor Confidence Shaken Amid Continuous Decline
The timing of these sales could not be worse for Tesla’s loyal investors. Over the past month, the company’s stock has been on a steady downward spiral, wiping out the gains made since late 2020. Shareholders who have stuck with the brand for years are watching their investments shrink, leading many to question what is happening behind the scenes.
Many retail investors, who passionately support Tesla’s long-term vision, are trying to keep morale high by sharing their stock purchase confirmations online. They hope their collective effort will prevent further panic selling. However, their optimism is being tested as more insiders choose to sell rather than hold.
A well-known investor community member, Mayur Thaker, recently called for action against Tesla’s chairperson after learning about her stock sales. However, another influential voice in the community, Alexandra Merz, pointed out that Denholm, along with other insiders, had a large legal settlement to pay, which could explain why they needed cash. This revelation slightly softened the outrage, but it didn’t erase the sense of betrayal felt by many shareholders.
With frustrations running high, Tesla investors are actively seeking answers. Some have turned to social media, asking the board members to address their concerns. Merz even reached out to Denholm directly with investor feedback. Denholm responded with a thank you, but whether this will restore confidence remains to be seen.
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Tesla Struggles Amid Market Challenges
Tesla’s stock has been through many ups and downs, but the current situation is particularly alarming for its loyal supporters. Earlier in the year, sales in China, a crucial market for the company, took a significant hit. This decline added to growing concerns about slowing demand for electric vehicles.
Investors had hoped for a positive catalyst, such as the much-anticipated reveal of a new Tesla model, but there has been no update on that front. The last time Tesla’s stock was in freefall, Elon Musk managed to lift investor confidence by announcing new developments. However, this time, no such announcements have been made, leaving shareholders in the dark.
Tesla’s stock was once soaring, making it one of the most valuable car manufacturers in the world. But over the past few months, it has struggled to maintain its position. The recent wave of insider stock sales has only added to the uncertainty, making investors fear that those with inside knowledge see more trouble ahead.
For now, Tesla shares continue to tumble, and investors are left wondering when, or if, the company’s leadership will step in to restore confidence. Until then, dedicated retail shareholders are holding onto their stocks, hoping that this storm will eventually pass.
