Wednesday, September 28, 2022

Musk Sells More Tesla Shares And Shares Continue To Fall

DETROIT (AP) – Tesla CEO Elon Musk sold another portion of his shares after pledging on Twitter to liquidate 10% of his shares in the electric vehicle maker.

Musk sold about 640,000 shares for about $ 687.3 million, according to two reports filed Friday with the US Securities and Exchange Commission. The eccentric CEO sold about 5.1 million shares this week, worth about $ 5.69 billion.

About $ 1.1 billion in proceeds from Thursday’s sales will go towards tax liabilities on stock options granted to Musk in September. These options are part of a compensation package that Musk and Tesla negotiated in 2018, which provided the CEO with options if Tesla meets certain financial targets. The company is now profitable and is worth over $ 1 trillion.

Documents released on Wednesday showed Musk was using options to buy just over 2.1 million shares at $ 6.24 each. Wedbush analyst Daniel Ives has calculated that Musk must pay more than $ 10 billion in taxes on stock options, which will be transferred next summer.

Musk’s sales so far account for just over 3% of his stake in Tesla. According to reports from the SEC and data provider FactSet, he still owns about 167.5 million shares, or just under 17% of the company.

Musk said over the weekend that he would sell 10% of his shares in the company, based on the results of a poll he conducted on Twitter. The sell-off messages prompted strong sell-offs in the stock on Monday and Tuesday. The stock has been down four days out of five this week and dropped 2.8% on Friday.

Although stocks are down 15% this week, they have risen 150% over the past 12 months.

According to Forbes, Musk is Tesla’s largest shareholder and the richest man in the world, with a net worth of around $ 278.7 billion.

Tesla Inc. based in Palo Alto, California, although Musk has announced that the company will move its headquarters to Texas.

Nation World News Desk
Nation World News Desk
Nation World News is the fastest emerging news website covering all the latest news, world’s top stories, science news entertainment sports cricket’s latest discoveries, new technology gadgets, politics news, and more.
Latest news
Related news
- Advertisement -