Tesla ($TSLA) Insider Exodus Accelerates as Musk Taunts Short Sellers—Is the EV Giant Losing Its Charge?

Elon Musk's latest tweetstorm targets short sellers—just as Tesla execs dump shares at a worrying clip. Coincidence? Or a red flag for investors?

The sell-off no one's talking about

While retail traders obsess over Musk's meme wars, filings show insiders quietly offloading $TSLA positions. Not the vote of confidence you'd expect from a company supposedly revolutionizing transportation.

Short sellers smell blood

With Tesla's valuation still detached from auto industry norms, bears are circling. Musk's theatrics might distract Twitter, but Wall Street's sharks care about one thing: cold, hard fundamentals.

The bottom line

When the CEO fights keyboard wars while his team cashes out, smart money reads the room. (But hey—what do we know? We're just watching from the sidelines as the 'growth stock' cult rearranges deck chairs.)

TLDR

• Tesla stock closed at $330.56 on August 15, 2025, down 1.50% for the day, with after-hours trading at $330.15.
• Senior VP Tom Zhu has sold more than 82% of his holdings since 2023, reducing ownership from 81,000 shares to under 15,000.
• Year-to-date, Tesla shares are down 18.15%, underperforming the S&P 500’s 9.66% gain.
• Elon Musk warned short sellers of “obliteration” once Tesla reaches full autonomy, with current short interest at 71.99M shares worth $24B.
• Despite volatility, Tesla holds a market cap of $1.07T and strong five-year returns of 200.38%, outpacing the S&P 500.

Tesla Inc. (NASDAQ: TSLA) stock closed at $330.56 on August 15, 2025, down 1.50% for the day, with a further 0.12% dip to $330.15 in after-hours trading.

Tesla, Inc. (TSLA)

The decline came amid news that Senior Vice President Xiaotong Zhu, also known as Tom Zhu, has sold more than 82% of his Tesla holdings since 2023.

Filings revealed Zhu cut his stake from over 81,000 shares to fewer than 15,000, with sales taking place across 2023 and 2024 at prices between $174 and $323. Analyst Gordon Johnson of GLJ Research described the selling as “alarming,” raising doubts about insider confidence in Tesla’s long-term outlook.

1/2 Tom Zhu, @elonmusk's "right-hand man", and de facto head of $TSLA China operations, has sold >82% of his $TSLA holdings since 2023, and ~80% since the 2024 proxy. https://t.co/BoEs9lk4Uj pic.twitter.com/BMxHqLk6bi

— Gordon Johnson (@GordonJohnson19) August 15, 2025

Musk’s Response to Short Sellers

Despite insider selling, CEO Elon Musk has continued his aggressive stance toward short sellers. Replying to a post on X, Musk stated that shorts WOULD be “obliterated” once Tesla reaches autonomy at scale. Current short interest stands at 2.56% of Tesla’s float, representing 71.99 million shares worth more than $24 billion.

Prominent institutional shorts include MUFG Securities, Jane Street Group, and Citadel Advisors. Musk’s rhetoric echoes his past clashes with high-profile critics, including Microsoft co-founder Bill Gates.

Performance Overview

Tesla’s year-to-date return stands at -18.15%, contrasting sharply with the S&P 500’s 9.66% gain. Over one year, Tesla has fared better, posting a 54.37% gain versus the index’s 16.35%. The three-year return of 6.87% trails the S&P’s 50.10%, while the five-year return shows significant outperformance at 200.38% compared to the S&P’s 91.23%.

The data underscores Tesla’s volatility: while long-term investors remain rewarded, near-term performance has lagged broader benchmarks.

Valuation and Financial Metrics

Tesla’s valuation remains stretched relative to peers. As of August 15, the company reported:

• Market Cap: $1.07T
• Trailing P/E: 196.76
• Forward P/E: 178.57
• PEG Ratio (5yr expected): 6.23
• Price/Sales: 12.54
• Price/Book: 13.79

Profit margins stood at 6.34%, with return on assets of 2.91% and return on equity of 8.18%. Over the trailing twelve months, Tesla generated $92.72 billion in revenue and $5.88 billion in net income, equating to diluted EPS of $1.69.

From a balance sheet perspective, Tesla reported $36.78 billion in cash with a manageable debt-to-equity ratio of 16.82%. Levered free cash FLOW was $1.34 billion, highlighting adequate liquidity but tight margins under growth pressures.

Outlook

While insider selling has raised eyebrows, Tesla’s long-term trajectory remains tied to execution on autonomy and energy expansion. With Musk’s defiance against short sellers and the company’s trillion-dollar valuation, investors face a complex mix of opportunity and risk.