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Wednesday, December 1, 2021

Elon Musk sells Tesla stock worth $1.1 billion

Elon Musk sold about $1.1 billion worth of Tesla shares on Wednesday. He promised a few days ago that if Twitter users voted for him to sell, he would cash out 10% of his shares.

The dispositions disclosed in regulatory documents later in the day were based on blind trading plans that executives often used to avoid suspicion of insider trading, and were often used to diversify sales over a period of time.

Since the announcement, Musk has remained silent on possible stock sales In tweet On Saturday, if a Twitter poll supports this idea, he will sell his 10% stake, which is currently valued at approximately $18 billion. It is unclear whether Wednesday’s sale is the first part of his promise. The sale of shares accounted for about 0.5% of his shares in Tesla.

Although Musk seems to have left it to the Twitter circle on the issue of whether to sell the stock and has attracted great attention, the regulatory documents show that he started Wednesday’s sales activity when he adopted a blind trading plan in September.

He has also stated in the past that he expects to sell a large portion of his Tesla shares to pay the tax due on tens of billions of dollars worth of options that must be exercised by August next year.

The transaction disclosed on Wednesday showed that as of the end of the transaction, Musk had exercised options worth about $2.3 billion on the stock. He only paid $13.4 million to purchase option-related stocks. The strike price of the option was $6.24, while Tesla’s closing price was $1,067.95.

Musk has said that he expects that the profits from the exercise of options will face a personal income tax rate of more than 50%, which means that he will have to sell more than half of the stocks he obtains each time the options are exercised to pay his taxes. . bill.

On Saturday, Tesla’s chief executive remained silent about the need to pay taxes on his expected option profits. Instead, he stated on Twitter that he is letting Twitter users decide whether or not he should sell his stock because “a lot of recent unrealized gains are a form of tax avoidance.”

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