Tesla chairwoman Robyn Denholm has sold another $33 million worth of Tesla stock (TSLA) as she lets Elon Musk destroy the company’s brand.
As the head of Tesla’s board of directors, Denholm is amongst the few people who actually have oversight over Elon Musk at Tesla.
While Musk is CEO, he owns only about 13% of Tesla’s shares. Still, he is seen as having complete control over the company and the board, which is actually what led to a judge rescinding his compensation package last year.
That’s partly because when he “negotiated” himself a $55 billion compensation package with the board, the board also gave itself exorbitant compensation, which it eventually had to partly give back to the company after shareholders sued it for excessive compensation.
Despite Musk making threats to shareholders to get more control over Tesla and resorting to resource tunneling, the board, including Denholm, has remained silent.
Meanwhile, Denholm has been pocketing generational wealth through Tesla.
The chairwoman has received hundreds of thousands of Tesla shares at a discount through stock options as part of the previously mentioned “excessive board compensation,” and she has been selling them as soon as she is allowed.
Last month, she sold $43 million worth of Tesla stocks, and today, Tesla revealed through a required SEC filing that Denholm is another 112,390 Tesla shares worth over $33 million through Merill Lynch:
With this sale, she has now sold over $100 million worth of Tesla stocks over the last 3 months.
Kimball Musk, Elon’s brother, and Tesla’s Chief Financial Officer Taneja Vaibhav also recently sold ahead of a recent drop in the company’s stock price.
Electrek’s Take
Top comment by Michael Wolf
Totally rational economic behavior on the part of Denholm. She's well aware that the board isn't going to do anything to try and change Musk's behavior. She's also well aware of the odds of Tesla stock getting much higher than it is now. She'd have to be crazy to not sell shares and lock in a level of wealth that most can only dream of. Of course, just because she's made a rational decision for herself doesn't mean it's not deserving of scorn.
Over $100 million in the last three months—that’s apparently the going rate for a chairperson to let Elon Musk destroy years of work building the Tesla brand.
That’s a hard deal to pass on, especially if you have low morals, which is Tesla’s main problem right now. Musk has surrounded himself with yes people with low morals.
He has distanced Tesla from its mission and no one is saying anything because they are let go or getting compensated to shut up about it.
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