Tesla’s (NASDAQ: TSLA) former executive Andrew Baglino has filed to offload almost all of his shares in the company. This comes a week Baglino resigned from Tesla as part of the company’s recent announcement of laying off over 10% of its global workforce and amid growing concerns over its operational performance.
Baglino, who served as Tesla’s senior vice president for energy engineering and powertrain, has filed to sell a staggering 1,141,362 shares, nearly liquidating his entire stake. Despite exercising half of his shares at $143, Baglino stands to reap approximately $80 million in profit from the sale, based on a valuation of around $200 million.
His departure marks the end of an 18-year tenure at the electric car manufacturer. Baglino was a key figure in Tesla’s journey since March 2006, contributing significantly to the development of the company’s foundational technologies, particularly in its early days with the Roadster, Tesla’s first electric vehicle.
Baglino’s decision to part ways with Tesla follows closely on the heels of chief Elon Musk’s announcement regarding layoffs within the company. The departing executive expressed gratitude for the opportunity to work alongside talented individuals during his tenure, emphasizing the invaluable experiences gained at Tesla.
“I made the difficult decision to move on from Tesla after 18 years yesterday,” Baglino said the day after he resigned. “I am so thankful to have worked with and learned from the countless incredibly talented people at Tesla over the years.”
Alongside Baglino’s departure, Rohan Patel, Tesla’s vice president of public policy and business development, has also bid farewell to the company. Patel, known for his active engagement with Tesla’s community, leaves behind a legacy of fostering connections between the company, its investors, and customers.
In response to these high-profile exits, Gary Black, managing partner at the Future Fund and a Tesla investor, noted that Baglino and other departing executives may be perceived as taking responsibility for recent challenges facing the company.
“No one should be surprised Drew and other execs are leaving as part of TSLA’s 10% layoff announcement,” Black said. “Someone has to take the fall for the sharp deceleration in [deliveries] growth, near record inventories, and declining margins and it wasn’t going to be Elon.”
These developments come as the carmaker released its Q1 2024 financials, marked by revenue of $21.3 billion for the period, below the consensus estimate of $22.15 billion and marking a 9% decline compared to the previous year – the steepest drop since 2012. The company also faced a 55% drop in profits to $1.13 billion compared to the same period last year and reported $0.34 earnings per share, which fell short of analyst expectations of $0.51 per share.
Despite the underwhelming financial results, Tesla witnessed a remarkable surge in its stock value, soaring by up to 9% subsequent to the earnings announcement. Investors directed their attention to the company’s optimistic outlook, particularly its forward-looking statements concerning forthcoming products and advancements in autonomous technology. Notably, Tesla has allocated $1.1 billion towards research and development in the first quarter, marking a substantial 49% increase compared to the corresponding period last year.
In light of anticipated expansion, Tesla hinted at forthcoming ventures, including the introduction of a compact electric vehicle priced at approximately $25,000 and the development of a “robotaxi” based on a novel vehicle platform. However, Musk recently pivoted towards expediting the progress of the robotaxi initiative, aiming for a debut slated for August.
Musk is also facing ongoing criticism from investors who argue that his attention is stretched thin, particularly following his acquisition and subsequent tumultuous management of the social network Twitter, rebranded as X. The $56 billion pay package proposed by Musk earlier this year, which was rejected by a judge as an “unfathomable sum,” remains a point of contention amongst Tesla shareholders.
Tesla last traded at $167.97 on the NASDAQ.
Information for this story was found via Quartz and the sources mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
