TSLA CFO Exit Sparks Stock Risk

Tesla announced the departure of its longtime Chief Financial Officer, Zachary Kirkhorn, who had been with the company for 13 years, including over four years as CFO. Given Tesla's unique compensation structure for executives, where most of their pay comes from stock options rather than high base salaries, Kirkhorn's departure puts his significant holdings of around 2.7 million Tesla shares in the spotlight. These stock sales by executives are closely monitored by investors, as seen with CEO Elon Musk's sales of Tesla stock in the past, which have caused volatility in the stock price. The impact of Kirkhorn's sales might be limited due to Tesla's high daily trading volume. Tesla's stock dropped by 1% after Kirkhorn's departure was announced and continued to decline slightly with the broader market trends.