Tesla Stock Bought by Insider for First Time in 5 Years — What It Means for Investors
Written by
Vance Cariaga
Edited by
Cory Dudak
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Telsa appeared to get a rare bit of good news in late April when reports surfaced that a company insider bought the electric vehicle maker’s stock — the first time that’s happened in five years. Usually, an insider buy signifies confidence that shares will grow. In this case, however, enthusiasm has been muted.
The insider buy was made by Joe Gebbia, a Tesla director and co-founder of Airbnb. On April 24, Gebbia spent about $1 million to purchase 4,000 Tesla shares at an average price of $256.31 each, Barron’s reported. The deal was made through a trust that now owns 4,111 shares, according to documents filed with the U.S. Securities and Exchange Commission.
Is the Insider Buy Good News for Investors?
Gebbia’s transaction marked the first time a Tesla insider bought the EV maker’s stock on the open market since February 14, 2020. As Barron’s noted, the 2020 buys were made by Tesla CEO Elon Musk and then-director Larry Ellison, the Oracle co-founder who left Tesla’s board three years ago.
So what does Gebbia’s insider buy mean for Tesla’s stock? Not much, according to some observers.
Electrek suggested Gebbia’s purchase was too small to boost investor confidence — partly because there continues to be a lot more money involving insider sales than insider buys. Electrek then pointed to recent sales of Tesla stock by Kimball Musk (Elon’s brother), Tesla Chief Financial Officer Taneja Vaibhav and Tesla Chairwoman Robyn Denholm.
Denhold alone sold 112,390 shares worth an estimated $32.1 million, Investing.com reported. Including that sale, Denholm has unloaded nearly $109 million in Tesla stock over the past three months.
As for Gebbia, with an estimated net worth of $7 billion, he didn’t risk a whole lot with a $1 million insider buy.
Tough Times for Tesla Brand
Gebbia’s transaction came during a very rough patch for Tesla. The company’s stock has fallen roughly 30% so far in 2025 amid concerns about everything from Musk’s public reputation to Tesla’s financial performance.
Musk has taken a lot of heat in his role as head of the Department of Government Efficiency (DOGE), an unofficial organization President Donald Trump created to slash federal government spending. Tesla itself became the target of mass protests, while many of its vehicles and dealerships worldwide were vandalized.
Meanwhile, Tesla recently posted big declines in both profits and auto sales during its latest quarter. Earnings per share fell 40% from the prior year to 27 cents a share, while revenue sank 9% to $19.335 billion. Both results were well below Wall Street estimates. Excluding regulatory credits of $595 million, Tesla actually had an operating loss.
More From GOBankingRates
Sources
- Barron’s, “Tesla Stock Sees First Insider Buy in Years“
- Electrek, “Tesla insider buys stock for the first time in years and it’s hilarious“
- Investing.com, “Tesla sees a rare insider buy, but also a notable insider sale“
