Another Tesla insider bails! Elon Musk ally James Murdoch dumps $13 million in Tesla stock as company suffers historic single-day plunge

James Murdoch, a Tesla board member and friend of CEO Elon Musk, sold $13.2 million worth of Tesla shares, which drove the company to its worst single-day decline since September 2020, Fortune reported.

James Murdoch's Big Payday

Murdoch, the estranged son of media baron Rupert Murdoch, exercised call options for 54,776 shares that were part of his compensation package, according to Fortune. He sold those shares and liquidated them for $13.2 million in cash on the same day, Fortune reported.

Trend Among Tesla Insiders

His sale comes after other nonexecutive directors made similar moves, including Tesla chair Robyn Denholm, Elon Musk's brother Kimbal Musk, and finance chief Vaibhav Taneja, according to Fortune.

Critical Time for Tesla’s Stock

Murdoch's sale came at a particularly low point for Tesla. The shares had been going steadily down over four weeks, wiping out all the gains registered since Donald Trump won the US presidential election, according to Fortune. As Tesla now is at its lowest level since October's third-quarter earnings announcement, investors are nervous. Murdoch's stock sale was not part of tthe pre-authorized trading plan under which Denholm sold, Fortune reported.

Retail Investors Trying to Hold the Line

Numerous retail investors, who have been the company's biggest backers, are trying to get other investors to buy Tesla stock, as per the report. Some have taken to social media platform X to post screenshots of their buy orders in a bid to mobilize others to hold the line in hopes, Fortune reported. According to them, others won’t likewise sell in a Tesla version of the prisoner’s dilemma, according to the report.

FAQs

How much did Murdoch make from the sale?
Murdoch made $13.2 million in cash from selling 54,776 shares of Tesla stock.

Did Murdoch’s sale affect Tesla’s stock price?
Yes, Murdoch’s sale led Tesla stock to its worst single-day decline since September 2020.