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Two Tesla Inc (NASDAQ:TSLA) board of directors members have sold nearly $200 million in stock ahead of the company's highly anticipated robotaxi launch in Texas.

These sales add to a history of board members cashing out and could be a red flag ahead of the key potential stock catalyst.

What Happened: Tesla insiders are no strangers to cashing out their compensation of options and stock, with Chairwoman Robyn Denholm recently filing to sell 112,390 shares for $32 million.

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Denholm has been one of the largest sellers of Tesla stock in recent years, with sales filings coming in February, March and April this year, along with multiple sales in 2024.

The most recent sales come from Ira Ehrenpreis and Kimbal Musk.

Ehrenpreis, who is the founder of venture capital firm DBL Partners, filed Form 144 for the sale of 477,572 Tesla shares worth around $162.1 million. The sale comes from the exercise of options.

Musk, who is the brother of Tesla CEO Elon Musk and a long-time board member, filed Form 144 for the sale of 91,588 Tesla shares worth around $31.1 million. Musk's sale comes from the exercise of options.

Why It's Important: It’s good to note that both of these sales are part of Rule 10b5-1 plans that are pre-approved and based on provisions such as time and/or the price of the stock.

Electrek, which reported the insider sales, said Ehrenpreis' term on the Tesla board ends this year and the sale could be his way of exiting his position.

Ehrenpreis' Rule 10b5-1 plan was adopted in December 2024, while Musk's was adopted in July 2024. These plans are less than a year old and could have been put into place based on the timeline of current and future Tesla catalysts, including launching robotaxis in Texas.

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The timing of the sales ahead of the robotaxi launch could instill less confidence in investors, as highlighted by Electrek.

"Isn't it strange that the board would sell hundreds of millions of dollars worth of stocks just weeks and months ahead of launching an autonomous ride-hailing service, which is supposed to usher in a new era of growth for Tesla?" Electrek asks in its story.