Tesla Chair Sells US$198 Million Stock Despite Musk's Hold Appeal

Robyn Denholm, Chair of Tesla’s Board of Directors at Tesla, has sold approximately US$198 million worth of company stock over the past six months, according to an analysis by The New York Times based on filings with the US Securities and Exchange Commission (SEC). These sales occurred as Tesla’s stock price declined by 11.92% in 2025, even as CEO Elon Musk publicly urged shareholders and employees to retain their shares.

The sales were executed under a 10b5-1 trading plan adopted in July 2024, a legal framework allowing executives to prearrange stock sales to avoid allegations of insider trading. Denholm’s first transaction under this plan took place shortly after Musk endorsed Donald Trump for the 2024 US presidential election. Her most recent sales occurred in early May 2025.

Since assuming the chair role in 2018, Denholm’s total proceeds from Tesla stock sales have exceeded US$530 million, placing her compensation significantly above her peers at other major US corporations. SEC filings indicate she still holds approximately 85,000 shares and nearly 200,000 unexercised options, valued at an estimated US$50–US$80 million.

A significant portion of Denholm’s earnings stems from earlier stock options granted between 2014 and 2020. One recent transaction involved purchasing over 112,000 shares at US$24.73 each and selling them the same day for more than US$270 per share. While such sales are legal under her prearranged trading plan, their timing has raised concerns given the company's declining stock value and Musk’s public appeals for long-term ownership.

In March 2025, following a sharp decline in Tesla’s share price, Musk reportedly urged employees in internal communications to “hang on to your stock.” The apparent disconnect between Musk’s message and Denholm’s sell-off has sparked questions about internal confidence in Tesla’s near-term prospects.

Critics have also highlighted potential governance issues. The Wall Street Journal reported in May that Tesla’s board had discussed CEO succession planning, citing concerns about Musk’s political affiliations and divided attention between Tesla and other ventures. While Tesla and Denholm denied these claims, the report noted that board members had engaged executive search firms to begin a formal process.

The political context adds further complexity. Over the past year, Musk has intensified his support for right-wing political figures and causes, including his involvement in the Department of Government Efficiency (DOGE) under Trump’s administration. These actions have coincided with boycott campaigns against Tesla in several countries and a decline in global sales.

“The optics suggest this is not a board chair who is fully invested in the company’s future,” said Brad Lander, New York City Comptroller, in a statement to The New York Times. His office oversees public pension funds with substantial Tesla holdings.

Denholm’s appointment as board chair in 2018 was part of a settlement with the SEC that required Musk to step down from the position. Her compensation has primarily been stock-based. However, as part of a 2023 settlement stemming from a 2020 shareholder lawsuit, Tesla's board agreed to stop issuing new stock options. Directors, including Denholm, have returned hundreds of millions of dollars in compensation as part of the settlement, though no wrongdoing was admitted. These clawbacks are ongoing in 2025.