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.
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
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.
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.
Tesla’s valuation remains stretched relative to peers. As of August 15, the company reported:
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 $1.34 billion, highlighting adequate liquidity but tight margins under growth pressures.
While insider selling has raised eyebrows, Tesla’s long-term trajectory remains tied to execution on autonomy and energy expansion. With Musk’s defiance against short sellers and the company’s trillion-dollar valuation, investors face a complex mix of opportunity and risk.
The post Tesla Inc. ($TSLA) Stock: Insider Sell-Offs Raise Concerns as Musk Warns Short Sellers appeared first on CoinCentral.
