Tesla's Senior Vice President Sells 82% of His Stake Since 2023, Raising Insider Concerns Amid Musk's Threats to Short Sellers

Tesla Inc. Senior Vice President Xiaotong Zhu has divested over 82% of his Tesla holdings since 2023, raising concerns about insider confidence. Analyst Gordon Johnson flags Zhu's stock sales as "alarming" and notes that Zhu has cut his holdings from over 81,000 shares to under 15,000. Despite this, Tesla shares closed at $330.56 on Friday, down 1.50% for the day.

Title: Tesla Faces Revenue Loss as Trump's Big Beautiful Bill Phases Out Carbon Credits

Tesla Inc. is set to lose a significant revenue source as President Trump's Big Beautiful Bill eliminates tax incentives for electric vehicles (EVs) and the Corporate Average Fuel Economy (CAFE) requirements. The bill, which passed in 2023, has had a profound impact on Tesla's financial health, as the company relied heavily on carbon credits to bolster its earnings [1].

Carbon credits, essentially free cash for Tesla, were a billion-dollar revenue source, contributing to the company's survival despite plummeting sales. These credits allowed Tesla to sell excess carbon credits to other automakers who failed to meet CAFE requirements. According to InsideEVs, Tesla generated $11.8 billion from these credits over the past decade [1].

The elimination of these credits is expected to have a substantial impact on Tesla's financial performance. Reuters noted that without these credits, Tesla would have reported a loss in the first quarter of 2025. Moreover, half of Tesla's second-quarter operating income came from credits, which experienced a 42% year-over-year drop [1].

Despite the potential challenges, Tesla's stock has shown resilience. The company's shares closed at $330.56 on Friday, down 1.50% for the day. Analysts attribute this resilience to various factors, including the rollback of tariffs on goods from China, which could lower production costs and improve profit margins [2].

However, the loss of carbon credits and reduced EV subsidies in the U.S. pose significant headwinds for Tesla. The company's future performance will depend on its ability to navigate these challenges and capitalize on opportunities in the evolving EV market [2].

References:
[1] https://mashable.com/article/tesla-credits-vital-revenue-source-lost?test_uuid=003aGE6xTMbhuvdzpnH5X4Q&test_variant=b
[2] https://www.asktraders.com/analysis/tesla-price-target-nasdaqtsla-raised-on-tariff-relief-optimism/