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
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