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After Twitter ballot, CEO Musk sells off $5B in Tesla shares

Tesla and SpaceX Chief Executive Officer Elon Musk speaks on the SATELLITE Conference and Exhibition in Washington on March 9, 2020. After making a promise on Twitter, the Tesla CEO has bought about 900,000 shares of the electrical automotive maker’s inventory, netting over $1.1 billion that may go towards paying tax obligations for inventory choices. The gross sales, disclosed in two regulatory filings late Wednesday, Nov. 10, 2021, will cowl tax obligations for inventory choices granted to Musk in September. Credit: AP Photo/Susan Walsh, File

After making a promise on Twitter, Tesla CEO Elon Musk has bought about 4.5 million shares of the electrical automotive maker’s inventory, elevating over $5 billion.

The gross sales, disclosed in 10 regulatory filings late Wednesday, quantity to about 3% of Musk’s stake within the firm.

About $1.1 billion will go towards paying tax obligations for stock options granted to Musk in September.

Last weekend, Musk mentioned he would promote 10% of his holdings within the firm, value greater than $20 billion, primarily based on the outcomes of a ballot he carried out on Twitter. The sale tweets prompted a dump of the stock Monday and Tuesday, nevertheless it recovered some on Wednesday. The shares had been up 2.6% to $1,096 in prolonged buying and selling Wednesday, they usually have risen greater than 50% this 12 months.

The filings additionally disclosed that Musk exercised choices to purchase simply over 2.1 million shares for $6.24 every. The firm’s inventory closed Wednesday at $1,067.95 per share.

The tax transactions had been “automatically effected” as a part of a buying and selling plan adopted on Sept. 14 to promote choices that expire subsequent 12 months, in response to varieties filed with the U.S. Securities and Exchange Commission. That was almost two months earlier than he floated the thought of the sale on Twitter.

After the transactions, Musk nonetheless owns about 167 million Tesla shares.

Musk was Tesla’s largest shareholder as of June, proudly owning about 17% of the corporate, in response to information supplier FactSet. He’s the wealthiest particular person on this planet, in response to Forbes, with a net worth of round $282 billion, most of it in Tesla inventory.

Wedbush Analyst Daniel Ives calculated that Musk has about $10 billion in taxes coming due on inventory choices that vest subsequent summer time.

The generally abrasive and unpredictable Musk mentioned he proposed promoting the inventory as some Democrats have been pushing for billionaires to pay taxes when the worth of the shares they maintain goes up, even when they do not promote any shares. However, the wording on unrealized positive aspects, additionally referred to as a “billionaires tax,” was faraway from President Joe Biden’s finances, which continues to be being negotiated.

“Much is made lately of unrealized gains being a means of tax avoidance, so I propose selling 10% of my Tesla stock,” he tweeted Saturday afternoon. “Do you support this?”

Tesla doesn’t pay Musk a money wage, however has obtained big inventory choices. “I only have stock, thus the only way for me to pay taxes personally is to sell stock,” Musk tweeted.

Tesla Inc. relies in Palo Alto, California, though Musk has introduced it will move its headquarters to Texas.

Musk: I’ll sell 10% of Tesla stock based on Twitter poll

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