Drew Baglino, the former Senior Vice President of Tesla Inc., has sold off a significant portion of his shares in the company. This move comes shortly after his resignation from the electric vehicle (EV) giant.
What Happened: Baglino, who had been with Tesla since 2006, sold approximately 1.14 million shares, valued at $181.5 million, as per a filing with the Securities and Exchange Commission (SEC) on Thursday.
The filing listed the “approximate date of sale” as Apr. 25, and described it as an exercise of stock options. This sale follows two previous transactions earlier this year, where Baglino offloaded about $4 million worth of shares.
Baglino, who was serving as the Senior Vice President of Powertrain and Energy Engineering, announced his departure from Tesla on Apr. 15, the same day the company revealed a 10% reduction in its global workforce. His resignation was followed by that of another long-serving executive, Rohan Patel.
Despite being a key figure at Tesla, Baglino has chosen to part ways with the company, which is undergoing a significant strategic shift. CEO Elon Musk recently announced that Tesla will prioritize its “autonomy roadmap,” focusing on the development of a robotaxi or CyberCab, and investing in AI infrastructure.
Why It Matters: Baglino’s departure from Tesla comes amid a period of significant change for the company. The EV maker recently reported a 9% drop in first-quarter revenue, its steepest year-over-year decline since 2012, due to declining demand and increased global competition.
Despite this, Musk remains optimistic about Tesla’s future, emphasizing the company’s investments in AI infrastructure and the potential for self-driving vehicle technology. This has led to a surge in Tesla’s share price, which was down about 40% for the year prior to the earnings report, jumping 18% in the two trading days after Musk’s commentary.
Analysts, however, remain divided on Tesla’s near-term prospects. While some, like Gary Black of Future Fund, see Tesla on a collision course with Uber and Lyft, others, like Bernstein analyst Toni Sacconaghi, are more skeptical, questioning whether the affordable EVs Musk promised will “really be new models, or tweaks on existing models.”
Price Action: As of Thursday’s close, Tesla is up 4.97%, at $170.18. The stock is up 14.31% over the last five days, according to Benzinga Pro data.