After board chair, now Tesla's CFO Vaibhav Taneja sells $8 million worth of company's shares amid stock price volatility and market jitters

Tesla's financial woes persist as the firm's CFO, Vaibhav Taneja, sold $718,000 of Tesla stock recently, adding to a growing tide of insider sales, as per a report. That adds up to more than $8 million of stock sold by Taneja in the past 90 days, reported Fortune.

Insider Sales and Investor Concerns

Taneja's sale follows a tough period for Tesla. The company has experienced significant production setbacks, including a retooling shutdown at its German plant to facilitate the rollout of the revamped Model Y, according to Fortune. After that, sales in Germany fell 76% last month, as per the report.

Even other internal issues, have added to the pressure on the stock, which has already declined due to decelerating growth estimates, reported Fortune.


In contrast to Tesla director Robyn Denholm's recent sale of stock, which was executed via a 10b5-1 trading plan (permitting sales without insider information regarding timing), Taneja chose to sell shares at the current market price, Fortune reported.

As the sentiment is already at its worst since last April, insiders' decision to sell their shares has raised concerns among investors, particularly when Tesla's stock is experiencing a decline, Fortune reported.

Family Ties and Stock Moves

The frequent stock sales by Tesla’s senior leadership have become a sensitive issue for many retail investors, who feel frustrated by what they see as executives treating the company’s stock as their personal piggy bank, reported Fortune. In February, CEO Elon Musk's younger brother, Kimbal Musk, unloaded $27.6 million worth of Tesla shares at just under $368 per share, Fortune reported. Since then, the stock has fallen almost 30%, the report added.

According to Fortune, there is an informal rule to sell when Kimbal sells his stock because he has a knack for timing the peak.

FAQs

How much stock has Vaibhav Taneja sold?
Taneja has sold over $8 million in Tesla stock in the last 90 days, as per the report.

Did Vaibhav Taneja sell his stock using the 10b5-1 plan?
No, Taneja actively chose to sell his shares at the current market price, Fortune reported.