The chair of Tesla sold stock worth $230 million while profits at Elon Musk's carmaker plunged

NEW YORK (AP) — The seat of Tesla sold much than $230 cardinal of institution banal since Elon Musk's endorsement of Donald Trump triggered boycotts and protests against his cars, sending its profits and banal terms plunging.

More than fractional of Robyn Denholm's currency haul came from income successful the archetypal 4 months this twelvemonth arsenic Tesla banal fell by one-third, according to filings reviewed by The Associated Press. In total, she unloaded hundreds of thousands of shares — much than fractional her holdings arsenic dictated by a pre-arranged selling program filed with regulators arsenic Musk began embracing right-wing politics.

Denholm filed that program connected July 25, the time Musk endorsed Trump for president.

Denholm's profits were apt outsized, too. That is due to the fact that galore of the shares she sold had been acquired done alleged options granted to her by Tesla that allowed her to bargain astatine a heavy discount to existent prices, according to information from probe supplier FactSet. Nearly a cardinal shares acquired done options were bought for $25, little than a tenth of the marketplace terms for overmuch of the past 9 months.

The AP reached retired to some Tesla and Denholm but did not person an contiguous reply.

A Denholm connection to The New York Times, which earlier reported connected the insider sales, said that the stock worth of holdings by Tesla directors has jumped due to the fact that the banal itself has soared, creating “outsized returns” for each shareholders.

It's not wide wherefore Denholm decided to currency retired truthful overmuch of her stake.

Pre-determined selling schedules are utilized by executives and directors arsenic a mode of telling investors that their selling isn't based connected insider information, which is illegal, oregon needfully a motion that they person turned pessimistic astir a company.

Denholm isn't the lone Tesla insider who has been selling. The institution main fiscal serviceman and 2 different directors person unloaded $189 cardinal successful the aforesaid nine-month period, according to FactSet data.

Tesla banal soared aft Trump was elected successful November connected hopes that the president-elect's adjacent relations with Musk would construe to little regulatory scrutiny and bigger profits.

But Musk's relation arsenic the authorities cost-cutting main for Trump and his comments supporting utmost right-wing politicians successful Europe person triggered a backlash among car buyers, and sales person sunk on with its stock.

Tesla reported past period that profits successful the archetypal 3 months of the twelvemonth plunged 71%.

The banal soared again aft Musk, the company's main enforcement and biggest shareholder, said helium would beryllium stepping backmost from his Washington work to walk much clip astatine the electrical automaker.

Tesla closed astatine $347 a stock Wednesday, up 4% for the time and much than 50% since its April low.