In an aerial view, new Tesla cars are seen parked in the parking lot of the Tesla Fremont factory on April 24, 2024 in Fremont, California.
Justin Sullivan | Getty Images
former Tesla CEO Drew Baglino, who announced his resignation earlier this month, sold stock in the electric car company worth about $181.5 million, according to a filing Thursday with the Securities and Exchange Commission.
Baglino, who joined Tesla in 2006, said he is selling about 1.14 million of his shares, listing an “approximate sale date” of April 25, which he described as an exercise of stock options.
Tesla announced on April 15 that it would lay off 10% of its global workforce, following a decline in first-quarter deliveries and a sharp decline in the stock price. That day, Baglino and fellow veteran Rohan Patel said they were leaving the company.
Baglino announced his departure in a statement posted on X.
“I made the difficult decision to transition from Tesla after 18 years yesterday,” he wrote. “I am extremely grateful to have worked with and learned from countless incredibly talented people at Tesla over the years.”
Baglino started as an engineer and rose through the ranks, most recently serving as senior vice president of powertrain and power engineering, a job he held since 2016. Reporting directly to Musk, Baglino was viewed as an unofficial chief operating officer. By many colleagues.
Before the latest sale, Baglino offloaded about $4 million worth of stock in two deals this year — one in late February and another in early April, filings show. In each case, he sold 10,500 shares, and exercised stock options on both.
During earnings calls and other major company events, including Tesla's “Part 3 Master Plan” presentation in the spring of 2023, Baglino has become a familiar voice and face for shareholders, often discussing mining, battery manufacturing and performance.
Baglino did not respond to requests for comment. Tesla also did not provide a comment.
Baglino resigned just as Tesla appeared to be embarking on a major strategic shift.
Musk said on the company's earnings call this week that while Tesla still intends to produce new, affordable electric vehicles in 2025, investors should focus more on Tesla's “autonomy roadmap.” Tesla said it plans to unveil the design of a robotaxi, or CyberCab, on August 8.
Musk also praised Tesla's investments in AI infrastructure and the company's potential to eventually deliver technology for self-driving vehicles, robotaxis, a driverless ride-hailing service, and a “conscious” humanoid robot. He even asked skeptics to stay away from the stock.
“If someone doesn't think Tesla is going to solve the autonomy problem, then I think they shouldn't be an investor in the company,” Musk said on the call.
Tesla's stock price, which had fallen about 40% over the year before the earnings report, jumped 18% in the two trading days after Musk's comment, closing Thursday at $170.18.
Bernstein analyst Tony Sacconaghi is among the skeptics. In an interview with CNBC's “Squawk on the Street,” Sacconaghi wondered whether the affordable electric cars promised by Musk “will really be new models, or modifications to existing models.” He also said that competitors, particularly Waymo, already have robotaxi services on the road, while Tesla is still grappling with self-driving vehicle research and development.
Tesla reported a 9% decline in first-quarter revenue, its largest year-over-year decline since 2012, due to lower demand and increased global competition. The company also reported a 55% decline in net income in the quarter.
While Musk said he expects the second quarter to be better than the first, the company has not issued guidance for this year.
At the end of the earnings call, Martin Vicha, Tesla's vice president of investor relations, announced that he, too, would resign.
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