Tesla Insider Sell-Offs Spark Market Concerns Amid Musk’s Short Seller Warning

Tesla shares dipped 1.50% to $330.56 on August 15, 2025, continuing a turbulent year that has seen the EV giant underperform the S&P 500 by nearly 28 percentage points. Senior VP Tom Zhu's dramatic reduction of his stake—from 81,000 shares to under 15,000 since 2023—has raised eyebrows across Wall Street.

Elon Musk's fiery warning to short sellers contrasts sharply with the $24 billion bearish bet against Tesla. The company's autonomous driving ambitions remain a potential catalyst, but insider selling at prices ranging from $174 to $323 suggests diverging views on timing.

Despite 200% five-year returns, Tesla's 2025 struggles highlight the volatility inherent in disruptive tech plays. The $1.07 trillion market cap now faces its sternest test of investor conviction since the 2020 battery day rally.