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Tesla (TSLA) shares are inching down at the time of writing despite news that its chair, Robyn Denholm, plans on unloading another $32 million worth of the EV stock.
Denholm has been on a selling spree over the past six months. In total, she has unloaded more than $150 million of Tesla stock since early December.
On Wednesday, she filed with the U.S. regulator to further reduce her stake in TSLA by more than 112,000 shares. Note that Tesla stock is currently down about 35% versus its year-to-date high.
Why Are Denholm’s Sales of Tesla Stock Significant?
Robyn Denholm’s sales of Tesla shares are concerning for investors as it may signal a lack of confidence in the company’s future performance.
Additionally, sizable insider sales can put downward pressure on TSLA stock, especially if investors fear she knows something that could emerge as a meaningful headwind for the EV maker. However, investors should note that her most recent filing is in regards to a prearranged 105b-1 trading plan.
Following the divestment of these 112,000 shares, Denholm will have sold nearly her entire stake in Tesla, which is fuelling speculation that the chairwoman may be preparing to leave the company’s board.
This could lead to governance shifts and impact investor sentiment as well.
Redburn Warns of a Crash in Tesla Shares to $160
Denholm’s filing to unload over $32 million worth of Tesla stock arrives at a time when the EV maker is already grappling with lower volumes and strained cashflow, which a Redburn Atlantic analyst warns could continue through the remainder of 2025.
In his recent report, Adrian Yanoshik said TSLA shares could crash further to $160 amidst tariff-related headwinds and a “possible rescinding of US Inflation Reduction Act (IRA) clean vehicle credits.”
According to Yanoshik, an upcoming refreshed Model Y and a long overdue lower-priced Tesla will fail to significantly boost sales this year. His price target indicates potential for more than 40% downside in the EV stock from here.
Wall Street at Large Is Cautious on Tesla
Other Wall Street firms, while not as dovish as Redburn, still aren’t in favor of buying Tesla stock in 2025.
The consensus rating on TSLA currently sits at “Hold” only with the mean target of $283.14 no longer representing meaningful upside potential from current levels.
