Robyn Denholm, chairman of Tesla Inc., speaks during an American Chamber of Commerce in Australia event in Sydney, Australia, on Wednesday, March 27, 2019.
Brendon Thorne | Bloomberg | Getty Images
Tesla Chairwoman Robyn Denholm has just sold $17.3 million worth of her shares in the electric vehicle maker, according to a filing Monday, bringing her total stock sales this year to more than $50 million.
Denholm, who joined Tesla’s board as an independent director in 2014 and became chair four years later, sold the shares as part of what’s called a 10b5-1 program put into place in October. She has now sold all of the 281,116 shares allowed in the agreement.
While Denholm still has the vast majority of the 1.66 million shares she owned as of the end of last year, according to the company’s proxy filing, her stock sales follow hefty selling from other big stakeholders. Former Tesla Senior Vice President Drew Baglino, who announced his resignation in mid-April, sold shares worth around $181.5 million soon after his departure, according to a filing.
Another Tesla board member, Kathleen Wilson-Thompson, set up a 10b5-1 trading plan in February 2024, for the potential sale of up to 280,000 shares by or before Feb. 28, 2025.
Tesla shares are down 26% this year, closing Monday at $184.76. The slide comes as the company faces increased competition, weakened demand for its EVs and a drop in first-quarter deliveries.
CEO Elon Musk has tried to focus investors’ attention on the company’s self-driving future instead of its core automotive business. He told investors on Tesla’s earnings call last month that those who doubt the company’s ability to deliver self-driving vehicles should stay away from the stock. For years, Tesla has been working to develop, but hasn’t brought to market, software that will make its existing cars autonomous, a dedicated robotaxi and humanoid robots capable of factory work.
“If somebody doesn’t believe Tesla’s going to solve autonomy, I think they should not be an investor in the company,” Musk said on the call.
In Denholm’s early years on the Tesla board, she served on the audit committee. She eventually replaced Musk as chair in November 2018, after the company struck an agreement with the SEC to settle civil securities fraud charges requiring Musk to relinquish that role temporarily, among other provisions.
The SEC had charged Musk and Tesla with securities fraud after Musk said, in a series of tweets in 2018 that he was considering taking the company private at $420 per share with “funding secured.” The tweets led to a stretch of volatility in Tesla shares.
Before joining the Tesla board, Denholm served in executive roles at Sun Microsystems, and in finance roles at Toyota in Australia and at accounting firm Arthur Andersen. Denholm is currently part of Tesla’s audit, compensation, nominating and corporate governance, and disclosure controls committees.
Denholm, who didn’t respond to a request for comment, is a named defendant in a shareholder lawsuit — Tornetta vs. Musk — that was decided in January. The judge in the Delaware case ruled that Tesla’s 2018 CEO pay plan, which was the largest in public corporate history, was only allowed by a board that was “beholden to Musk,” and should be rescinded.
In her opinion, Chancellor Kathaleen McCormick wrote that by serving on Tesla’s board, Denholm received “life-changing” compensation, which “far exceeded the compensation she received from other sources.”
Denholm’s lateststock sales coincide with struggles at Tesla and a broad restructuring effort that’s included thousands of layoffs.
Demand for Tesla’s EVs slumped in the first quarter, and inventory levels have visibly swelled. Revenue in the period fell 9% from a year earlier, the steepest drop since 2012, while net income plunged 55%.
Musk said in an internal memo in April that Tesla was cutting more than 10% of its global headcount. He didn’t say which departments or locations would be most affected. In the earnings call, he referred to the restructuring as a “pruning exercise” and added, “We’re not giving up anything that is significant that I’m aware of.” He said that if the company organizationally is “5% wrong per year,” its cumulative inefficiency comes out to 25% or 30%.
Denholm and Musk are currently trying to convince shareholders to vote with directors and executives at Tesla on a number of proxy proposals.
The most material proposal asks shareholders to return to Musk his compensation package that was invalidated by the Delaware Chancery Court in the Tornetta decision. The pay package would be worth tens of billions of dollars in Tesla shares to Musk.
Tesla’s largest individual retail shareholder, tech billionaire Leo Koguan, has repeatedly called for investors to vote against the plan. In a post on X, Koguan recently wrote, “Don’t be a sucker, just vote NO.”
Washington, D.C.’s attorney general sued Amazon on Wednesday, accusing the company of covertly depriving residents in certain ZIP codes in the nation’s capital from access to Prime’s high-speed delivery.
The lawsuit from AG Brian Schwalb alleges that, since 2022, Amazon has “secretly excluded” two “historically underserved” D.C. ZIP codes from its expedited delivery service while charging Prime members living there the full subscription price. Amazon’s Prime membership program costs $139 a year and includes perks like two-day shipping and access to streaming content.
“Amazon is charging tens of thousands of hard-working Ward 7 and 8 residents for an expedited delivery service it promises but does not provide,” Schwalb said in a statement. “While Amazon has every right to make operational changes, it cannot covertly decide that a dollar in one zip code is worth less than a dollar in another.”
Amazon spokesperson Steve Kelly said in a statement it’s “categorically false” that its business practices are “discriminatory or deceptive.”
“We want to be able to deliver as fast as we possibly can to every zip code across the country, however, at the same time we must put the safety of delivery drivers first,” Kelly said in a statement. “In the zip codes in question, there have been specific and targeted acts against drivers delivering Amazon packages. We made the deliberate choice to adjust our operations, including delivery routes and times, for the sole reason of protecting the safety of drivers.”
Kelly said Amazon has offered to work with the AG’s office on efforts “to reduce crime and improve safety in these areas.”
In June 2022, Amazon allegedly stopped using its own delivery trucks to shuttle packages in the ZIP codes 20019 and 20020 based on concerns over driver safety, the suit states. In place of its in-house delivery network, the company relied on outside carriers like UPS and the U.S. Postal Service to make deliveries, according to the complaint, which was filed in D.C. Superior Court.
The decision caused residents in those ZIP codes to experience “significantly longer delivery times than their neighbors in other District ZIP codes, despite paying the exact same membership price for Prime,” the lawsuit says.
Data from the AG shows that before Amazon instituted the change, more than 72% of Prime packages in the two ZIP codes were delivered within two days of checkout. That number dropped to as low as 24% following the move, while two-day delivery rates across the district increased to 74%.
Amazon has faced prior complaints of disparities in its Prime program. In 2016, the company said it would expand access to same-day delivery in cities including Atlanta, Chicago, Dallas and Washington, after a Bloomberg investigation found Black residents were “about half as likely” to be eligible for same-day delivery as white residents.
The ZIP codes in Schwalb’s complaint are in areas with large Black populations, according to 2022 Census data based on its American Community Survey.
The Federal Trade Commission also sued Amazon in June 2023, accusing the company of tricking consumers into signing up for Prime and “sabotaging” their attempts to cancel by employing so-called dark patterns, or deceptive design tactics meant to steer users toward a specific choice. Amazon said the complaint was “false on the facts and the law.” The case is set to go to trial in June 2025.
According to Scwalb’s complaint, Amazon never communicated the delivery exclusion to Prime members in the area. When consumers in the affected ZIP codes complained to Amazon about slower delivery speeds, the company said it was due to circumstances outside its control, the suit says.
The lawsuit accuses Amazon of violating the district’s consumer protection laws. It also asks the court to “put an end to Amazon’s deceptive conduct,” as well as for damages and penalties.
To get packages to customers’ doorsteps, Amazon uses a combination of its own contracted delivery companies, usually distinguishable by Amazon-branded cargo vans, as well as carriers like USPS, UPS and FedEx, and a network of gig workers who make deliveries from their own vehicles as part of its Flex program.
Amazon has rapidly expanded its in-house logistics army in recent years as it looks to speed up deliveries from two days to one day or even a few hours. In July, the company said it recorded its “fastest Prime delivery speeds ever” in the first half of the year, delivering more than 5 billion items within a day.
In relying on its own workforce, Amazon has assumed greater control over its delivery operations.
In his complaint, Schwalb cites an internal company policy that says Amazon may choose to exclude certain areas from being served by its in-house delivery network if a driver experiences “violence, intimidation or harassment.” The company relies on UPS or USPS to deliver packages in excluded areas.
This photograph taken in Paris on April 19, 2024, shows a smatphone displaying the US singer-songwriter Taylor Swift’s new album “The Tortured Poets Department” on Spotify. Queen of pop Taylor Swift released her highly anticipated record “The Tortured Poets Department” on April 19, 2024 — the 11th studio album from the megastar who is already having a blockbuster year.
– | Afp | Getty Images
Spotify Wrapped 2024 is out, giving hundreds of millions of users the ability to see their most-played songs and artists over the course of the year.
The annual report, which allows users to compare their music listening habits with other fans around the world, on Wednesday began rolling out to all users on the streaming platform.
This year, Spotify added additional artificial intelligence features to enhance individual users’ Wrapped experiences, including personalized AI podcasts about users’ music listening histories, a feature powered by Google’s NotebookLM and stemming from an expanded partnership between the two companies.
Last month, Spotify reported earnings that included optimistic profit guidance for the fourth quarter, despite missing analysts’ third-quarter targets for both revenue and earnings per share. The company also said it had about 640 million monthly active users on the platform, which slightly surpassed analyst expectations.
Taylor Swift is Spotify’s Global Top Artist for the second year in a row, dominating the most-streamed global albums chart with “The Tortured Poets Department: The Anthology,” and Sabrina Carpenter’s hit song “Espresso” is the most-streamed song both globally and nationally.
Here are some of this year’s chart-toppers:
Most-streamed songs in the United States
“Espresso” by Sabrina Carpenter
“Not Like Us” by Kendrick Lamar
“A Bar Song (Tipsy)” by Shaboozey
“I Had Some Help (Feat. Morgan Wallen)” by Post Malone
“MILLION DOLLAR BABY” by Tommy Richman
Kendrick Lamar’s “Not Like Us” skyrocketed to second-most-streamed song in the country this year. Drake, Lamar’s opponent in a renewed public rap battle earlier this spring, surged on the most-streamed artists’ list, while Lamar ended up in seventh place on that list.
Most-streamed artists in the United States
Taylor Swift
Drake
Zach Bryan
Morgan Wallen
Kanye West
“The Joe Rogan Experience,” which hosted President-elect Donald Trump in October, took the No. 1 spot for top podcasts worldwide. “Call Her Daddy,” which hosted Vice President Kamala Harris that same month, took second place.
Both appearances represented a distinct shift in presidential campaigning strategies toward non-legacy-media outlets, reaching millions of weekly listeners.
File photo of Todd McKinnon, chief executive officer of Okta Inc.
Bloomberg | Bloomberg | Getty Images
Shares of Okta popped more than 18% in extended trading Tuesday after the identity management company released third-quarter results that beat analysts’ estimates and offered rosy guidance.
Here’s how the company did:
Earnings per share: 67 cents adjusted vs. 58 cents expected by LSEG
Revenue: $665 million vs. $650 million expected by LSEG
Okta helps companies manage employees’ access to applications or devices with features such as single sign-on and multifactor authentication. The company swung to profitability, reporting net income of $16 million, or 9 cents per share, during the quarter, compared with a net loss of $81 million, or 49 cents per share, in the same period last year.
Revenue increased 14% from $569 million a year ago, according to a release. The company reported $651 million in subscription revenue for the quarter, beating the $635 million average analyst estimate, according to Street Account.
“Our solid Q3 results were underpinned by continued strong profitability and cash flow,” Okta CEO Todd McKinnon said in a statement. “The focused investments we’ve made in our partner ecosystem, the public sector vertical, and large customers are materializing in our business with each of these areas contributing meaningfully to top-line growth.”
For the fourth quarter, Okta said it expects to report revenue between $667 million and $669 million, topping the $651 million average estimate, according to LSEG. The company expects to report earnings of 73 cents to 74 cents per share for the period, which also exceeded estimates.
Prior to the close, Okta shares were down 10% for the year, while the Nasdaq is up 30% over that stretch.
Okta will host its quarterly call with investors at 5 p.m. ET.