Tesla CFO racks up third $1M May stock sale

Dive Brief:

• Tesla CFO Vaibhav Taneja sold another $1 million in common stock, marking his third sale to date in May, according to a Friday securities filing.
• Including a May 1 sale of common stock valued at approximately $1.1 million and a May 9 sale of $1.1 million, the electric vehicle maker’s finance chief has sold about $3.1 million in shares this month, according to filings with the Securities and Exchange Commission. 
• The sales follow after Taneja — who assumed the role of CFO in 2023 after 13-year Tesla alum, Zachary Kirkhorn departed — received a compensation package reaching over $139 million, CFO Dive previously reported. Taneja’s compensation was comprised mainly of an equity grant of approximately $113 million in stock options and about $26 million in stock awards, according to the company’s annual report. 

Dive Insight:

Taneja, who previously served as Tesla’s chief accounting officer before assuming the CFO seat, was the only named Tesla executive to receive an equity award for 2024, according to the company’s annual report, with Tesla noting his compensation had not been adjusted since he took the finance reins.

The more than $139 million in annual compensation for the finance chief comes as the EV maker remains locked in a tug-of-war over a potential $56 billion pay package for CEO Musk. Musk’s compensation for 2024 was left unfilled in the company’s annual report.

The CFO’s steady sales of company stock also come as the Austin, Texas-based EV maker has seen its share value whipsaw over the past year in the face of economic and consumer pressure, impacted by an ongoing consumer backlash related to Musk’s political activities, tariff uncertainty, and growing competition in key markets such as China. Tesla’s stock has risen by 47% over the last 30 days, according to data by Nasdaq.

Tesla stock rose Tuesday after Musk said he would pare down his political spending during a conference in Qatar, and said he would continue to serve as Tesla’s CEO for the next five years, according to a BBC report.

The remarks come after Musk previously assured Tesla investors that he would be stepping back from his role at the Department of Government Efficiency, and as Tesla’s board reportedly fired what Wedbush Securities analyst Dan Ives termed as a “warning shot” at Musk by initiating a search for a potential successor for CEO, The Wall Street Journal previously reported.

The Board’s alleged move came after Tesla reported a 71% decline in net profit for its most recent quarter, marked by rising cost concerns and pressures related to tariffs in markets including China, where Tesla has seen sales continue to slump. During the company’s Q1 earnings call in April, Taneja highlighted the negative impact of potential tariffs that could be levied against the EV space, and noted “hostility towards our brand and our people had an impact in certain markets.”

Musk has moved to reassure both consumers and investors in recent weeks despite continuing setbacks, including a March recall of its long-awaited Cybertruck vehicles. The EV maker is also fielding hiccups related to the company’s “robotaxi” product, a long-time passion project of the CEO. In a CNBC interview, Musk reiterated a June 2025 launch date for the taxis in Austin, Texas, and detailed plans to further expand the fleet to cities such as Los Angeles and San Francisco, California.

Among other moves, the company has also made changes to its board of directors. In an 8-K filed with the Securities and Exchange Commission Friday, Tesla said longtime Chipotle executive Jack Hartung would be joining its board, as well as serving as a member of its audit committee, effective June 1.

Hartung, who had served as the restaurant chain’s CFO from 2002 until late last year, previously announced his intent to retire from the company this year. He postponed his departure following CEO Brain Niccol’s jump to Starbucks and stayed on as president of strategy, CFO Dive previously reported.

Hartung will officially step down from his executive roles effective June 1, Chipotle said in a May 6 company filing, but will remain as a strategic advisor to ensure an orderly transition. The Chipotle executive currently serves on the boards of Portillo’s, The Honest Company, and Zocdoc, according to a company biography page.