Tesla (NASDAQ:TSLA) Chair Robyn Denholm, who took over Elon Musk’s post last year following the CEO’s run-in with the SEC, has purchased shares of the electric car maker in the open market.
As noted in a newswire from Barron’s, the Tesla Chair paid $232,720 on July 29, 2019 for 1,000 TSLA shares at an average price of $232.72 each. It should be noted that this is Denholm’s first open-market purchase of TSLA stock since joining the company’s board back in August 2014.
Robyn Denholm, who has served as the Chief Finance Officer and Head of Strategy at Telstra, Australia’s largest telecommunications company, prior to her full-time appointment as Tesla’s Chair, disclosed her purchase in a form that she filed with the SEC. Apart from the recent shares that she bought, Denholm also owns options for 180,165 Tesla shares.
The Chair’s purchase came a few days after Tesla shares took a tumble following the release of the company’s second-quarter results. Tesla shares dropped by 14% after the company’s earnings call, though the electric car maker has exhibited some recovery since then. Tesla shares have so far fallen 27.4% in 2019 as of Wednesday’s close. On the other hand, the S&P 500 has shown an 18.9% rise in the same period.
Neither Denholm herself nor Tesla has issued a statement about the Chair’s recent purchase of TSLA stock. Nevertheless, Denholm’s recent acquisition hints at her confidence in the company’s shares. During the 2019 Annual Shareholder Meeting, after all, Denholm noted that investing in TSLA requires a great amount of “intestinal fortitude,” on account of the wild swings in the electric car maker’s stock price.
While Tesla has dived back into volatility following the release of its second-quarter results, the company has recently seen some support from a number of notable investors. Among these are Commerzbank AG, a German banking giant, as well as former TSLA bear and longtime Shark Tank Judge Kevin O’Leary, who admitted that he personally bought Tesla shares. O’Leary noted that his purchase was partly driven by Tesla’s capability to an impressive amount of talent, including young, bright interns that would otherwise be under-utilized in a traditional car company.
Disclosure: I have no ownership in shares of TSLA and have no plans to initiate any positions within 72 hours.