Dive Brief:

• Tesla CFO Vaibhav Taneja sold $1.7 million in shares of common stock for the electric vehicle manufacturer earlier this week, while Board Chair Robyn Denholm sold about $33 million in shares, according to Monday securities filings.
• The sales represent the second offloading of stock by the two executives in as many months, with both Taneja and Denholm, as well as Tesla board member Kimbal Musk, the brother of CEO Elon Musk, having collectively sold tens of millions in shares of company stock in early February, CFO Dive previously reported. Taneja sold $2.8 million in stock at the time, while Denholm sold shares for approximately $43 million. In January Denholm, Musk, and other board members of the Austin, Texas-based EV maker agreed to pay back a collective $919 million to Tesla in a court settlement stemming from a shareholder lawsuit that asserted the directors had overpaid themselves, CFO Dive reported.
• Taneja and Denholm’s stock sales this week also took place as the EV maker has continued to see its stock price plummet, amid both slumping global sales and uncertainty surrounding potential tariffs and their impact on the EV space, both in the U.S. and in countries such as Canada, according to reports.

Dive Insight:

Tesla’s stock value has sunk rapidly in recent weeks after an initial spike in the days following President Donald Trump’s election to a second term.

While the company’s stock spiked 84% following the election to just before Christmas, Tesla shares have lost approximately a third of their value since Trump officially took office, according to a report by CNN — with the company therefore losing about 87% of its election boost.

Despite the close relationship between Trump and Tesla CEO Elon Musk, the EV maker could potentially be among the companies hit hard by looming tariffs, with Taneja warning such tariffs could have a negative impact on the company’s bottom line during an earnings call in January. The company remains “very reliant” on parts sourced outside of the U.S., Taneja said, noting tariffs could therefore hurt Tesla’s profitability.

Continued uncertainty surrounding tariffs, as well as the industries and countries to be affected, has only compounded economic headwinds facing Tesla and fellow competitors in the auto industry.

On Tuesday, Trump imposed 25% tariffs on imports from Canada and Mexico — before issuing a one-month pause for U.S. automakers on Wednesday, CFO Dive previously reported. In another twist of the escalating trade war, Trump on Thursday paused tariffs on imports from Mexico which are in compliance with the United-States-Mexico-Canada Agreement, CFO Dive sister publication Supply Chain Dive reported. A short while later, Trump then paused tariffs on Canada which similarly fall under the USMCA agreement, CNN reported.

Outside of the U.S., lawmakers in countries such as Canada have proposed plans to impose their own tariffs in response to the U.S., which could also potentially hurt Tesla. In February, Canadian lawmaker Chrystia Freeland, who is running as a potential candidate for prime minister, vowed “surgical” reprisals to U.S. tariffs on the country, including a 100% tariff on Tesla’s cars, The Independent reported.

Both the sales of stock by Tesla executives and the broadening trade war are occurring as the EV maker sees its global sales nosedive, impacted by an international backlash against Elon Musk’s political activities in the U.S., a glut of rising competition in the space from legacy automakers, and shifting consumer spending habits regarding automotive sales, according to reports. For instance, Tesla sales in Australia plunged 72% in February compared to the prior year period, The Guardian reported.  

In a breakdown of Tesla sales across global markets by Newsweek, meanwhile, the publication cited data from the European Automobile Manufacturers Association which found Tesla sales across the European Union, United Kingdom, and European Free Trade Association fell by 45% last month as compared to January 2024. Tesla also saw a shrinking of market share in that region to 1% from 1.8%, despite overall EV vehicle sales growing by 34% over the same period, Newsweek reported.

Shares of Tesla fell 5.61% Thursday to close at $263.45. 

Tesla did not immediately respond to requests for comment.