Why Elon Musk Sells Tesla Stocks – First Sale in 5 Years
Tesla CEO Elon Musk has unloaded a $5 billion stake in the electric car maker. After conducting a poll on Twitter, he was asked whether he should have sold 10% of the company’s massive stake. According to regulatory documents, Elon, the world’s richest man, has ordered more than 4.5 million rallies this week. It is noteworthy that this is its first sale in five years.
Musk uncrated about $1.1 billion worth of stocks to pay earnings tax on fairness options. These transactions were carried out based on a trading plan adopted in September.
Over the past two days, Musk has made the remaining sales. The documents do not reflect whether the Twitter poll had any impact on Elon’s decision. Will the richest man in the world continue to sell shares until he meets the 10% threshold? He had to get rid of about 17 million shares by the margin, maybe even more so if it included options to implement in its entire ownership.
The options used by Musk were derived from the 2012 Grand Prix. He would have to work on them by August next year. Otherwise, the deadline would expire. As a rule, taxes on such transactions are covered by the immediate disposal of some of the newly acquired shares. Earlier this year, Musk publicly announced plans to use the options received from the 2012 award shortly.
It is possible that the option exercises and related sales were still implemented despite the results of the Twitter survey. This is because they were executed according to a pre-designed plan. However, the terms of such programs are not made public. Accordingly, bailiffs have the right to change or cancel them at any time.
Who Bought Tesla Stocks?
Musk has sold more than $3.88 billion worth of stock in trading over the past two days. These transactions were not recorded as 10b5, which means that these were not scheduled sales.
Documents from last night showed that Muskie was selling a separate block of Tesla shares as planned. It is noteworthy that these sales amount to more than 930 000 shares. The value of the shares is more than 1.1 billion dollars. Speaking at the DealBook online summit, Citadel CEO Ken Griffin said he did not want to see Musk sales. He said it was people like Elon Musk and Jeff Bezos who changed lives. People even want companies to control them.
Current and former board members and chairpersons, Elon Musk’s brother, have redeemed hundreds of millions of dollars worth of Tesla shares since Oct. 28. Since then, Tesla’s market capitalization has exceeded $1 trillion. Among insider sales, Musk Brother’s deal was the only transaction that was not planned. Kimbal Musk sold $109 million worth of shares ahead of a Twitter poll.
Tesla Stocks after Selling
However, the Twitter referendum has shattered Tesla shares in recent days. As a result, $50 billion was withdrawn from Elon’s net worth. Tesla closed at $1067.95 on Wednesday, up 4.3%. The company’s loss is less than 13% this week. After the first few trade disclosures, the stock rose 2.7% in post-market trading.
Elon last sold stakes in 2016; When he used the options and liquidated the newly acquired shares to cover $590 million in income tax. In a statement on the Nov. 6 poll, Musk noted that a lot has been going on lately because unrealized profits are a way to avoid taxes. Accordingly, the company offered to sell 10% of the shares. Of the 3.5 million votes, 58% were in favor of sales. It is worth noting that 50-year-old Elon Musk is currently the richest man in the world. His fortune is $300 billion.
