Elon Musk sells another $1.05 billion of stocks

by Jonathan Adams
Elon Musk

According to filings with the SEC, Musk made the sales after exercising options to buy 2.15 million shares

Elon Musk continued to sell his Tesla Inc. shares Tuesday, selling another 934,000 shares for about $1.05 billion.

According to filings with the Securities and Exchange Commission (SEC), Musk made the sales after exercising options to buy 2.15 million shares.

In all, Musk has sold nearly 9.2 million shares worth about $9.85 billion since Nov. 8, a day after Musk’s Twitter poll decided he should sell 10% of his Tesla stake. Some of the stock sales had been put into motion well before the poll was posted.

The world’s richest person had on Nov. 6 tweeted that he would sell 10% of his stock if users of the social media platform approved. A majority of them had agreed with the sale.

Assuming Musk intends to sell 10% of his shares, he’s more than halfway there. Before the sales began, his 10% stake amounted to nearly 17 million shares — so after Tuesday’s sales, he has about 7.9 million shares to go.

Last Tuesday, Musk sold 934,091 shares to meet tax withholding obligations related to the exercise of stock options.

The Wall Street Journal (WSJ) reported Tuesday that Musk faced a $3.5 billion tax bill on his options, which would have been bigger if Tesla stock hadn’t plunged after he tweeted his plans to sell — saving him about $480 million, according to WSJ calculations.

Barron’s on Tuesday estimated that at his current pace, Musk’s selloff will be done in another four weeks.

Tesla stock has fallen nearly 9% since his Twitter poll Nov. 8. Still, the electric-vehicle maker’s shares are up 57% year to date, and up about 100% over the past 12 months.

This article is for information purposes only.
Please remember that financial investments may rise or fall and past performance does not guarantee future performance in respect of income or capital growth; you may not get back the amount you invested.
There is no obligation to purchase anything but, if you decide to do so, you are strongly advised to consult a professional adviser before making any investment decisions.

Related News

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Know more