Tesla and SpaceX Chief Executive Officer Elon Musk speaks astatine the SATELLITE Conference and Exhibition successful Washington connected March 9, 2020. After making a committedness connected Twitter, the Tesla CEO has sold astir 900,000 shares of the electrical car maker's stock, netting implicit $1.1 cardinal that volition spell toward paying taxation obligations for banal options. The sales, disclosed successful 2 regulatory filings precocious Wednesday, Nov. 10, 2021, volition screen taxation obligations for banal options granted to Musk successful September. Credit: AP Photo/Susan Walsh, File
After making a committedness connected Twitter, Tesla CEO Elon Musk has sold astir 4.5 cardinal shares of the electrical car maker's stock, raising implicit $5 billion.
The sales, disclosed successful 10 regulatory filings precocious Wednesday, magnitude to astir 3% of Musk's involvement successful the company.
About $1.1 cardinal volition spell toward paying taxation obligations for stock options granted to Musk successful September.
Last weekend, Musk said helium would merchantability 10% of his holdings successful the company, worthy much than $20 billion, based connected the results of a canvass helium conducted connected Twitter. The merchantability tweets caused a merchantability disconnected of the stock Monday and Tuesday, but it recovered immoderate connected Wednesday. The shares were up 2.6% to $1,096 successful extended trading Wednesday, and they person risen much than 50% this year.
The filings besides disclosed that Musk exercised options to bargain conscionable implicit 2.1 cardinal shares for $6.24 each. The company's banal closed Wednesday astatine $1,067.95 per share.
The taxation transactions were "automatically effected" arsenic portion of a trading program adopted connected Sept. 14 to merchantability options that expire adjacent year, according to forms filed with the U.S. Securities and Exchange Commission. That was astir 2 months earlier helium floated the thought of the merchantability connected Twitter.
After the transactions, Musk inactive owns astir 167 cardinal Tesla shares.
Musk was Tesla's largest shareholder arsenic of June, owning astir 17% of the company, according to information supplier FactSet. He's the wealthiest idiosyncratic successful the world, according to Forbes, with a net worth of astir $282 billion, astir of it successful Tesla stock.
Wedbush Analyst Daniel Ives calculated that Musk has astir $10 cardinal successful taxes coming owed connected banal options that vest adjacent summer.
The sometimes abrasive and unpredictable Musk said helium projected selling the banal arsenic immoderate Democrats person been pushing for billionaires to wage taxes erstwhile the terms of the stocks they clasp goes up, adjacent if they don't merchantability immoderate shares. However, the wording connected unrealized gains, besides called a "billionaires tax," was removed from President Joe Biden's budget, which is inactive being negotiated.
"Much is made lately of unrealized gains being a means of taxation avoidance, truthful I suggest selling 10% of my Tesla stock," helium tweeted Saturday afternoon. "Do you enactment this?"
Tesla does not wage Musk a currency salary, but has received immense banal options. "I lone person stock, frankincense the lone mode for maine to wage taxes personally is to merchantability stock," Musk tweeted.
Tesla Inc. is based successful Palo Alto, California, though Musk has announced it volition determination its office to Texas.
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