Elon Musk sent out an internal memo revealing that Tesla (NASDAQ: TSLA) will be laying off about 10% of its global workforce, a significant number considering the total workforce is roughly 140,000 worldwide.
Among those affected is Andrew ‘Drew’ Baglino, who announced his departure from the company after 18 years in a post on X, describing it as a ‘difficult decision’.
Baglino has been the senior vice president of Tesla’s powertrain and energy engineering team since 2019.
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Before leaving, Baglino appears to have made another tough call involving a significant number of TSLA shares.
An insider trade worth almost $2 million
Namely, two weeks before his departure, on April 1, Baglino sold 10,500, at an average price of $176.2, for a profit of $1,850,000.
This trade comes after previous sales in 2024, where on February 29, Baglino sold the same number of shares for an average price of $204.17, for a profit of $2,143,785.
TSLA stock suffered an significant amount of insider sales in 2024
Baglino’s trade represents only a fraction of the shares sold. However, Robyn Denholm, the Chairman of the board of directors, has shown the least confidence in TSLA stock, selling nearly $35 million worth of TSLA shares since the start of 2024.
These sales come amid a lackluster performance since January 1, with TSLA stock plummeting by over 33% during the same period. This decline has raised concerns about its future performance and has led to negative economic repercussions such as price cuts and layoffs.
After TSLA closes at lowest price in more than 11 months, only time will reveal whether these sales signal more trouble ahead for the world’s most popular EV maker or are simply part of profit-taking strategies.
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