TLDR
- Tesla stock down 5% to $332.50 on Monday, continuing 13% year-to-date decline
- Former Chipotle CFO Jack Hartung appointed to Tesla’s board effective June 1
- Hedge fund Coatue Management sold 600,000 Tesla shares worth over $100 million
- Tesla board members including Kimbal Musk and Robyn Denholm have been selling shares
- Investor confidence appears to be waning despite recent stock rebounds
Tesla announced the appointment of Jack Hartung, retired Chipotle Mexican Grill CFO, to its board of directors on Friday. The news comes as Tesla shares fell 5% to $332.50 in early Monday trading, extending the electric vehicle maker’s year-to-date decline to 13%.
Hartung brings substantial financial experience to Tesla’s board after spending 25 years at Chipotle. He joined the restaurant chain when it had fewer than 200 locations and stayed through its expansion to over 3,700 stores.
The new board member will serve on Tesla’s audit committee starting June 1. His addition expands the board to nine members.
Tesla’s disclosure noted that Hartung’s son-in-law has been a “non-executive, salaried employee of Tesla since December 2016, and does not share a household with Mr. Hartung.”
The board expansion with outside finance expertise might normally be viewed positively. However, Tesla stock continued its downward trend, underperforming the broader market.
Major Investors Heading for the Exit
While Tesla tries to strengthen its governance, big money appears to be losing faith in the company.
Hedge fund Coatue Management, led by billionaire investor Philippe Laffont, slashed its Tesla holdings during the first quarter of 2025. According to 13F filings, the firm sold 600,000 shares, reducing its position from 2.2 million to 1.6 million shares.
The value of Coatue’s Tesla stock sale topped $100 million based on prices at the end of Q1. This move suggests the tech-focused fund is becoming less bullish on Tesla.
Coatue also trimmed positions in other tech giants, selling 1.4 million Nvidia shares and 200,000 Microsoft shares during the same period. However, Nvidia remains one of the fund’s top holdings alongside Amazon and Super Micro Computer, while Tesla ranks substantially lower in its portfolio.
It’s not just institutional investors heading for the exits. Tesla insiders have been selling too.
Kimbal Musk, Elon Musk’s brother and a Tesla board member, sold 75,000 shares in February 2025, according to SEC filings. Board chair Robyn Denholm has reportedly sold $198 million worth of Tesla shares in the past six months under a 10b5-1 trading plan.
The widespread selling by both company insiders and Wall Street institutions raises questions about confidence in the company’s leadership.
Leadership Concerns Overshadow Potential
Tesla’s stock performance has been disappointing compared to the broader market. Year-to-date, Tesla has lagged the S&P 500 by about 12 percentage points.
Some analysts have already adjusted their expectations downward. Barclays analyst Dan Levy maintained a hold rating on Tesla stock after lowering his price target from $325 to $275 in April.
Stock volatility has been a constant for Tesla shareholders. Despite occasional rebounds, the company has struggled to maintain momentum, typically falling again as quickly as it rises.
Many of Tesla’s challenges can be traced to CEO Elon Musk’s polarizing behavior. His political affiliations have reportedly sparked consumer backlash beyond the U.S., affecting global sales.
Even after Musk announced plans to refocus his attention on Tesla, the selling trend has continued. This suggests investors remain skeptical about the company’s near-term prospects.
The appointment of Hartung with his extensive financial background comes at a critical time for Tesla. The company faces increasing pressure to demonstrate it can achieve sustainable growth in an uncertain economic environment.
Tesla’s recent stock performance stands in stark contrast to the market’s highest-growth companies. As Monday trading began, futures for the S&P 500 and Dow Jones Industrial Average were down 1.2% and 0.8% respectively, showing Tesla’s drop was more severe than the broader market decline.
With both Tesla insiders and major institutional investors reducing their stakes, the company faces a critical challenge to reverse negative sentiment and prove it can still deliver value to shareholders.
The latest board addition may be an attempt to address governance concerns, but it appears insufficient to stem the immediate selling pressure as Tesla stock continued its decline in Monday trading.
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