Tesla shareholder woes continue to mount as James Murdoch, son of Australian media mogul Rupert Murdoch, cashed out his shares at a critical juncture, contributing to the worst single-day loss since September 2020. The sale comes amid a string of exits by fellow nonexecutive directors, including Tesla chair Robyn Denholm and Elon Musk’s younger brother Kimbal.
Murdoch exercised call options worth $13.2 million in cash on Monday, liquidating them after just one day. His decision follows several other sales made by Tesla insiders, sparking frustration among retail shareholders who have seen their shares dwindle in recent weeks.
Tesla’s reliance on stock-based compensation is coming under scrutiny as the company faces its lowest point since October 2023. Despite a dismal four-week stretch of declines, Murdoch chose to sell his shares, raising concerns about the loyalty and motivations of Tesla’s corporate insiders.
The sale has left investors reeling once more, with many taking to social media to post screen grabs of their buy orders in an effort to rally support and counteract the negative sentiment. The company’s board chair, Alexandra Merz, attempted to channel this frustration constructively by polling her followers on what they would tell Tesla’s directors if given the chance.
Tesla investors have faced similar challenges before, most notably when fourth-quarter sales disappointed early last year, briefly ceding market share to Chinese rival BYD. However, sentiment may be at its lowest level since Musk acquired Twitter in 2022, which sparked a dismal December and subsequent price collapse.
Source: https://fortune.com/2025/03/12/elon-musk-confidante-james-murdoch-latest-tesla-insider-to-sell-stock