DETROIT (AP) — After making a promise on Twitter, Tesla CEO Elon Musk has sold about 4.5 million shares of the electric car maker’s stock, raising over $5 billion.

The sales, disclosed in 10 regulatory filings late Wednesday, amount to about 3% of Musk’s stake in the company.

Musk’s stock options grant in September will result in a payment of $1.1 million to the IRS.

According to results of an online poll, Musk stated that he will sell 10% his company holdings worth more than $20Billion. Stock prices fell Monday and Tuesday due to the sale tweets, though they recovered some Wednesday. In extended trading on Wednesday, the shares rose 2.6% to $1.096 and have increased more than 50% in this year.

According to the filings Musk had also exercised options to purchase just over 2 million shares of stock for $6.24 each. The company’s stock closed Wednesday at $1,067.95 per share.

The tax transactions were “automatically effected” as part of a trading plan adopted on Sept. 14 to sell options that expire next year, according to forms filed with the U.S. Securities and Exchange Commission. He had been discussing the possibility of selling the shares for nearly two months.

Musk owns approximately 167 million shares of Tesla after all the transactions.

Musk was Tesla’s largest shareholder as of June, owning about 17% of the company, according to data provider FactSet. He’s the wealthiest person in the world, according to Forbes, with a net worth of around $282 billion, most of it in Tesla stock.

Daniel Ives, a Wedbush analyst, calculated that Musk owes about $10 billion in tax on the stock options that will vest next summer.

Musk, who can be unpredictable and abrasive at times, suggested selling the stock to raise capital. Democrats have been pushing for billionaires to pay taxes when the price of the stocks they hold goes up, even if they don’t sell any shares. Unrealized gains are also known as “against” or “underrealized gain”. “billionaires tax,”removed from the President Joe Biden’s budget, which is still being negotiated.

“Much is made lately of unrealized gains being a means of tax avoidance, so I propose selling 10% of my Tesla stock,” he tweeted Saturday afternoon. “Do you support this?”

Tesla doesn’t pay Musk any cash, but he has huge stock options. “I only have stock, thus the only way for me to pay taxes personally is to sell stock,” Musk tweeted.

Tesla Inc. has its headquarters in Palo Alto (California), although Musk announced it. it will move its headquarters to Texas



Source: HuffPost.com.

Share Your Comment Below

LEAVE A REPLY

Please enter your comment!
Please enter your name here