Tesla Chair Robyn Denholm Faces Backlash Over $180 Million Stock Sales Amid EV Market Challenges

Tesla board chair Robyn Denholm has sparked controversy after selling $180 million in company stock over the past six months, a move drawing sharp criticism as Tesla navigates a turbulent period in the electric vehicle (EV) industry. According to an analysis by The New York Times, reported by Fortune, Denholm’s sales come at a time when Tesla’s core car business faces its worst crisis in years, raising questions about leadership accountability and shareholder trust.

Timing of Sales Fuels Investor Concerns

Denholm’s stock transactions, totaling $180 million, occurred during a challenging stretch for Tesla, with the company grappling with a declining stock price and intensified competition in the EV sector. On Tuesday, May 13, 2025, The New York Times published a comparison showing Denholm’s compensation far exceeds that of other non-executive chairs, including Stephen Hemsley of UnitedHealth Group, who earned over $100 million in a similar period. The report highlights that Denholm has collected $530 million from Tesla stock sales since becoming chair in 2018, a figure that starkly contrasts with the company’s recent struggles.

Critics argue the timing of these sales—often executed when investors were still reeling from Tesla’s downturn—undermines confidence in the company’s leadership. Fortune reports that during the height of boycotts and backlash, insiders like Denholm and James Murdoch sold shares, prompting retail shareholders to demand action in the boardroom. They sought “crowdsourced suggestions from the community about what the board could do to soothe some of the more frayed nerves,” but received only a “simple thanks” in response.

Denholm’s Influence and Ties to Elon Musk Scrutinized

Denholm’s role as Tesla’s board chair has come under further scrutiny due to her perceived lack of influence over CEO Elon Musk, whose decisions have significantly impacted the company’s trajectory. Fortune points out that Denholm rarely engages publicly, emerging only recently to lobby for Musk’s $101 billion pay package—the largest in human history by stock price. Supporters of Musk argue that Denholm understands attempts to control him would stifle his talent, with one spokesperson stating, “Tesla has outperformed its industry peers and created outsized returns for the owners of the company, the shareholders.”

However, Tesla’s brand has taken a hit in 2025, with Fortune noting that President Trump’s “first buddy” has been blamed for “inflicting potentially historic and irreversible damage” to the company’s reputation. This perception adds pressure on Denholm to demonstrate independent governance, especially as Tesla’s stock price struggles to recover.

EV Market Dynamics and Tesla’s Future

The broader EV market adds context to Denholm’s controversial sales. Tesla’s stock, once a darling of investors, has seen its market cap drop below the $1 trillion threshold, a significant decline from its peak. Industry trends show increased competition from legacy automakers like Ford and GM, who are ramping up EV production, alongside new entrants offering lower-cost models. Tesla’s focus on premium vehicles, like the Model S and Model X, has left it vulnerable to market shifts favoring affordability.

Operationally, Tesla faces challenges with production scaling and supply chain constraints, impacting delivery timelines for models like the Cybertruck. Denholm’s remaining 85,000 shares, valued at $28.4 million, and her options to sell an additional half million shares, signal potential further divestment, which could exacerbate investor unease. According to Tesla investor Alexandra Merz, Denholm’s strategy of “selling down her stock as she exercises the underlying options” ensures her independence in governance decisions, but it also raises questions about her long-term commitment to Tesla’s recovery.

As Tesla aims to deliver a “smoke-free future,” as advertised in its campaigns, the company must address internal governance issues to regain investor trust. Denholm’s stock sales, while financially prudent for her, highlight the delicate balance between personal gain and corporate responsibility in the high-stakes EV industry.

Photos courtesy of Wikipedia / Tesla